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Atlanta Fed Predicts 2.8% GDP Drop Amid 'Trumpcession'

3/4/2025

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Summary

Fed Forecasts Decline

The Atlanta Fed forecasts a 2.8% GDP decline for Q1 2025, revising earlier growth predictions.
Economic uncertainty and potential recession, dubbed "Trumpcession," stem from Trump's tariffs and federal job cuts.
Critics caution that changing GDP calculations to exclude government spending may misrepresent economic health.
Mixed indicators, like a record trade deficit and falling consumer confidence, suggest economic weakening.
Major stock indices have experienced significant declines in response to tariff announcements.

Summary

Crypto Market Plummets

The Atlanta Fed revised its Q1 2025 GDP estimate down to -2.8%, a significant change from +3.9%.
Bitcoin and Ethereum experienced sharp declines, with Bitcoin falling from $45,000 to $42,000 amid investor anxiety.
Panic selling led to a surge in trading volumes, with Bitcoin's volume increasing from $20 billion to $35 billion.
Technical indicators revealed bearish trends, as Bitcoin's RSI dropped from 60 to 45, suggesting potential further declines.
AI-related tokens also fell, with SingularityNET and Fetch.AI decreasing by 5% and 4.5%, respectively.

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Fed Forecasts Decline

The Atlanta Fed forecasts a 2.8% GDP decline for Q1 2025, revising earlier growth predictions.
Economic uncertainty and potential recession, dubbed "Trumpcession," stem from Trump's tariffs and federal job cuts.
Critics caution that changing GDP calculations to exclude government spending may misrepresent economic health.
Mixed indicators, like a record trade deficit and falling consumer confidence, suggest economic weakening.
Major stock indices have experienced significant declines in response to tariff announcements.

1 / 2