What happened Donald Trump has blamed former president Joe Biden for a 0.3% first quarter dip in GDP that has put the US on the brink of a technical recession.
Who said what In a social media post yesterday, Trump asked supporters to "be patient" and blamed his predecessor for the economic contraction, writing "this is Biden's stock market, not Trump's". The claim came "despite data showing that growth was strong when he took office", said The New York Times. The figures "marked the first quarterly decline in three years", said the BBC, and coincided with Trump's new import taxes, which have "scrambled global trade and created major uncertainty".
But amid the signs of weakness in the first GDP report of Trump's second term, "it wasn't all doom and gloom", said CNN. US businesses "actually stepped up their spending", most likely to "get ahead of any expected price increases stemming from Trump's tariffs". Stephen Miran, chair of the White House's Council of Economic Advisers, told CNN's Pamela Brown that increasing their business investment was "not what firms do when they're concerned about the economic outlook".
What next? US stocks fell after the GDP report was released yesterday. But on the question of whether the US economy will actually tip into recession, forecasters remain "roughly split", said USA Today, "with nearly four in 10 figuring more than 50% odds of such a downturn". |