Page 3 - Us Economy

US economy contracts 0.5% in Q1, worse than earlier two estimates

The US economy shrank at a 0.5 per cent annual pace from January through March as President Donald Trump's trade wars disrupted business, the Commerce Department reported Thursday in an unexpected deterioration of earlier estimates. First-quarter growth was weighed down by a surge of imports as US companies, and households, rushed to buy foreign goods before Trump could impose tariffs on them. The Commerce Department previously estimated that the economy fell 0.2 per cent in the first quarter. Economists had forecast no change in the department's third and final estimate. The January-March drop in gross domestic product the nation's output of goods and services reversed a 2.4 per cent increase in the last three months of 2024 and marked the first time in three years that the economy contracted. Imports expanded 37.9 per cent, fastest since 2020, and pushed GDP down by nearly 4.7 percentage points. Consumer spending also slowed sharply, expanding just 0.5 per cent, down from a robu

Rate cuts can wait as Fed monitors inflation from tariffs, says Powell

In his prepared testimony Powell said the economy remains in a "solid position," with low unemployment and inflation far below its pandemic-era peak

Zero-for-Zero Tariffs: Rethinking Trade Liberalization

In this SmartCut episode, Dr. Shikha Jain, Director of IMDR Pune, unpacks Zero-for-Zero Tariffs, their history, benefits, challenges, and why India needs to rethink trade liberalisation. >

More ex-federal workers in US face job hunt as grants & contracts vanish

The drastic, sudden pullback in federal dollars is collapsing opportunities for many who've spent years in public service

US trimming collection of consumer price data, raising reliability fears

The Bureau of Labour Statistics stated that the cuts would have 'minimal impact' on estimates of the overall inflation rate, though they could "increase the volatility" of more detailed measures

Inflation data threatened by US government's hiring freeze as tariffs loom

The Labor Department has cut back on the inflation data it collects because of the Trump administration's government hiring freeze, raising concerns among economists about the quality of the inflation figures just as they are being closely watched for the impact of tariffs. The department's Bureau of Labor Statistics, which produces the monthly consumer price index, the most closely watched inflation measure, said Wednesday that it is reducing sample in areas across the country and added that it stopped collecting price data entirely in April in Lincoln, Nebraska, and Provo, Utah. It also said it has stopped collecting data this month in Buffalo, New York. In an email that the BLS sent to economists, viewed by The Associated Press, the agency said that it temporarily reduced the number of outlets and quotes it attempted to collect due to a staffing shortage in April. The reduced data collection will be kept in place until the hiring freeze is lifted. The cutbacks have intensified ..

Trump Gold Card will be highly successful in India: US Commerce Secretary

Howard Lutnick says Trump Gold Card-a new $5 million US residency route-will attract wealthy Indians looking to contribute as international entrepreneurs in America

Statsguru: Why foreign students are 'golden goose' for the US economy

Can the US afford to drive away its international students? It can't, suggest data

US consumer spending rises slightly in April amid tariff uncertainty

The report from the Commerce Department on Friday suggested the economy struggled to rebound early in the second quarter

US economy contracts 0.2% in Q1 on weak spending, record trade drag

The slight upward revision in GDP reflected stronger business investment and a greater accumulation of inventories. Federal government spending wasn't as much of a drag as originally reported

Jamie Dimon warns of stagflation risk amid US economic uncertainty

Dimon's comments expand on remarks he made in recent , when he warned against complacency and said recession remains a possibility, adding that many of the effects of the tariffs are yet to be seen

US filings for jobless aid inches down modestly as uncertainty lingers

The number of Americans filing unemployment claims last week fell slightly as businesses continue to retain employees despite growing economic uncertainty over US trade policy. Applications for jobless benefits fell by 2,000 to 227,000 for the week ending May 17, the Labour Department said Thursday. That's pretty close to the 230,000 new applications analysts forecast. Weekly applications for jobless benefits are seen as representative of US layoffs and have mostly bounced around a historically healthy range between 200,000 and 250,000 since COVID-19 ravaged the economy and wiped out millions of jobs five years ago. Even though President Donald Trump has paused or dialled down many of his tariff threats, concerns remain about a global economic slowdown that could upend the US labour market, which has been a pillar of the American economy for years. The US and China last week agreed to a 90-day pause in their trade war, giving financial markets a boost and at least temporarily ...

US House approves Trump's tax bill amid debt worries, adds $3.8 trn to debt

The US House narrowly passed Trump's sweeping tax and spending bill, adding $3.8 trillion to national debt. The plan includes tax cuts, military funding, and strict immigration measures

Explained: Why the IMF is warning the US debt is near breaking point | Trump tariffs

Did you know? The US' debt levels could soon surpass its post-World War II peak back in 1945, yes, even higher than during the Great Depression.

'Not a buying moment': Analysts wary of IT stocks amid Moody's US downgrade

Moody's downgrades US rating: Analysts see IT sector taking longer-than-expected to yield returns. Investors, they believe, should brace for near-term pressure

Moody's US downgrade deepens investor fears over rising fiscal risks

The ratings agency cut America's pristine sovereign credit rating by one notch on Friday, the last of the major ratings agencies to downgrade the country

'Eat the Tariffs': Donald Trump tells Walmart not to charge shoppers more

President Trump criticises Walmart for blaming tariffs on price hikes, urging the retailer to absorb the costs instead. 'Walmart and China should 'eat the tariffs,' he wrote on Truth Social

As US economy dips, why it means good business for India's exports

Surging trade deficit has had severest impact on America's GDP since 1947

US Fed holds rates steady: Key highlights | Jerome Powell | US Fed interest rates | US Economy

US Federal Reserve kept its benchmark rates steady at 4.25% – 4.5%. Watch the video to know the key highlights from the US Federal Reserve's May meeting.

Moody's flags rising retail credit exposure as risk to US economy grows

Since the pandemic, the share of US and global credit markets has gradually shifted from banks in the public markets to private credit firms