Howard Lutnick blasts Atlanta Fed prediction of economic contraction

In the United States, U.S. Secretary of Commerce Howard Lutnick expressed shock over a recent estimation from the Federal Reserve Bank of Atlanta regarding economic growth. On March 15, 2025, he appeared on FOX Business, where he interrupted the host Maria Bartiromo in disbelief after she relayed the prediction that GDP would contract by 2.4% in the first quarter of the year. Lutnick referred to the estimate as 'ridiculous' and highlighted that it had improved slightly from a previous estimate of -2.8% made earlier in March. He also stressed that the GDPNow tracker is merely a running estimate and not an official forecast. Lutnick acknowledged that he had not spoken to Atlanta Fed President Raphael Bostic regarding this matter. He elaborated on the economic recovery efforts led by the current administration, describing initiatives to cut regulations and invest $2 trillion to build factories in America as a means of fostering a strong economy going forward. He expressed optimism about the expected rebound beginning in the third quarter. Furthermore, Lutnick reflected on the current state of the economy, suggesting that the pain felt in the first quarter was a continuation of issues inherited from previous circumstances. His comments come ahead of the Bureau of Economic Analysis's advanced estimate for first quarter GDP, which is scheduled for release on April 30.