The Atlanta Federal Reserve on Monday produced a new projection that the American economy would shrink by nearly three percent in the first quarter of President Donald Trump's second term.
Specifically, the Atlanta Fed now projects that the economy will shrink by 2.8 percent in Q1 2025, which actually marks a deterioration from the projection it made last week that the economy would shrink by 1.5 percent on the quarter.
The projection comes as President Donald Trump and X owner Elon Musk push to fire thousands of federal employees and as Trump is threatening to slap hefty 25 percent tariffs on the goods of Mexico and Canada, which are the United States' two largest trading partners.
In addition to this, the current strain of bird flu is causing havoc on farms across the United States and leading to spikes in the prices of eggs and poultry.
