Biden 1, Trump 0 — US economy shrinks as MAGA chaos bites
Mad King Donald proves a terrible enemy of good economic administration, and the latest data from the US economy reversed in the first quarter of this year.
The third and final estimation of the March quarter GDP, Economic Analysis Office On one night, US economists shocked a sharper revision than expected to grow.
Consensus estimation was not included in the second estimate of a decrease of 0.2% annually in the first three months of the year. Instead, growth was -0.5%. The contraction sharply fell to 2.4% growth in the last quarter of 2024 and 2.8% for the entire last year.
There were more than one reasons. The key was a major increase in the US in the quarter, while importers were trying to prevent Trump’s chaotic tariff policies that moved away from growth. Imports increased by 37.9%and reduced GDP by 4.7 percent.
However, federal government expenditures fell by 4.6%, the most steep decline since the first quarter of 2022, while leaving the American pande. And Dogge cuts, tariff changes, ice raids and general chaos, hit home expenses: consumer expenditures increased only 0.5% than 4% in the last quarter of 2024. This is a sharp drop from the previous estimation of the trade department.
A category that measures the basic power of the economy among GDP data increased by 1.9% annually from January to March. This was a solid result-in the fourth quarter of 2024, much lower than 2.9% and the trade department of the trade department for January-March 2.5% estimation. This autumn saw that some economists began to cut future forecasts for the rest of this year, but they did not see a repetition of the contraction. However, so far, Trump’s economic record has been measured very weakly compared to Joe Biden’s.
While Iran bombed Iran in the US media this week, Trump has devoted any time to another attack on the US Federal Reserve President Jay Powell, despite the worsening economy, there was no deduction in interest rates until the US economy was more convinced about the health and weakness of the US economy.
Trump’s latest attack on the Independence of the Central Bank saw that the US dollar has fallen to three years low against other currencies on Wednesday and Thursday. For example, the dollar has lost more than 10% of its value against the euro this year and has reached its lowest level since 2021 this week. This is apparently good for Trump’s tariff agenda, because it will increase import prices even more. In doing so, it will further strengthen the inflation brought by Trump’s tariffs and guarantee that the Fed is sitting on the edge longer.
Trump may be a stable genius compared to cognitively corrupted Joe Biden, but the Biden economy is getting pretty good compared to the chaos that emerged in the first three months of this year.
