Trump official floats new approach on GDP, as economy poised to slow sharply

The Trump administration is considering a change in how economic growth is measured, amid forecasts of a significant economic slowdown. The Federal Reserve Bank of Atlanta predicted a 2.8 percent contraction in economic growth for the first quarter of the year. This has prompted discussions within the administration about altering the calculation of GDP to exclude government spending. Trump adviser Elon Musk and Commerce Secretary Howard Lutnick have publicly supported this idea, suggesting it would provide a clearer picture of economic health. Economists caution that while removing government spending from GDP calculations might not drastically alter the figures, it could set a concerning precedent. Consumer spending, which drives about 69 percent of the economy, has shown signs of weakness, further complicating the economic outlook. The debate arises as the U.S. faces broader concerns over the reliability of its economic data, with declining response rates to government surveys and budget cuts affecting statistical agencies. — news from The Washington Post

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