After four years of poor economic policy, the Atlanta Fed is predicting massive GDP growth in the second quarter of 2025. They initially predicted the GDP to grow by 3.8%, but the estimate has surged to a purported 4.6% increase.
Atlanta Fed Q2 GDP tracker surges to 4.6% from 3.8% on May 30, on expected plunge in imports. If this is the final print, would be the highest US GDP since 2021 https://t.co/s7cgYsIj19 pic.twitter.com/5jRdCTZKY5
— zerohedge (@zerohedge) June 2, 2025
The first section of the chart to note is the data from 2021-2024, or the term of former President Biden. Biden's economic policy was terrible for business in America and for economic growth in general. His regulatory policy, including increased taxation, environmental laws, and an uncertain economic climate, contributed to volatility, a lack of investment in the American economy, and an attitude among businesses to brace for hard times rather than embracing growth and innovation.
Companies, rather than build up inventory to sell in the global market, reduced the amount of product they were keeping in inventory, typically a signal that they were bracing for negative economic impact. This was most likely in fear of a recession, something many people worried about under Joe Biden's presidency.
Policies like raising corporate taxes and political discussion threatening capital gains hikes and demonizing 'big business' significantly lowered the level of private investment, contributing to a lower GDP. The Biden Administration's strong push to curb domestic energy also contributed to uncertainty and volatility in key sectors, where businesses struggled to account for changing costs in their industry.
With the election of President Trump in 2024, many key economic indicators began trending positive. Businesses began to invest more in their business structures and further innovation. Consumer spending on goods increased, marking good short-term growth in the American economy. The same trend occurred with consumer spending on services, which suggests real wage gains and greater employment stability.
This marks a stark contrast in the American economy, from the sluggish growth of the Biden administration to a prospective hope of a business, investment, and innovation-friendly economic environment provided by the Trump administration.
🚨 BOOMING ECONOMY! Fed projects a +4.6% GDP surge in Q2, fueled by soaring incomes, plunging inflation, and a SLASHED trade deficit.
— Townhall.com (@townhallcom) June 3, 2025
Thank you, @POTUS !! pic.twitter.com/2ipduU3RWV