Atlanta Fed forecasts that the economy will shrink in the first quarter, potentially disrupting stock markets and Bitcoin
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Golden Finance reported that the Atlanta Fed's GDPNow forecast shows that the economy will shrink -1.5% in the first quarter of 2025, which could disrupt stock markets and Bitcoin. The market is now awaiting the Fed's response to the economic headwind.
- A sharp decline in net exports and weakened consumption expenditure resulted in a significant correction to the GDPNow model to -1.5%.
- Stocks face profit risks; Bitcoin and crypto assets may fluctuate due to expectations of Fed rate cuts.
- The Fed strikes a balance between inflation concerns (3% in January) and pressure to stimulate growth, delaying the clarity of rate cuts.