The Feds take:
Key Fed GDP forecast sees U.S. economy contracting 1.4% in first quarter
By
Greg Robb
The weakness in the U.S. economy is starting to get more pronounced, according to a closely watched Federal Reserve forecast.
The Atlanta Federal Reserve's GDPNow forecast for the first quarter was just cut to a worrisome negative 1.4% annual rate.
That's down from a negative 0.5% reading late last week.
Much of the weakness in the first quarter is tied to the surge of imports ahead of new White House tariffs. Imports are subtracted from growth.
However, there are also signs of weakness in the domestic economy. The regional Fed's forecast of first-quarter final sales to private domestic purchasers, an important measure of demand that excludes the trade sector, has been cut to a paltry 0.4% rate increase from 1.5% previously.