
GDP grows more when the economy is better because it means more spending. Economists were expecting a 2.5% increase from Sept-Dec but it was only 1.4%. So the economy is slowing down, but inflation is still around 3%. This is because of the tariffs (which are a tax), and it is a very problematic pattern. SCOTUS also struck down his tariffs today, but he immediately imposed a new 10% global tariff after.
As for why I’m confused, the past year and a month has been Trump essentially molesting the economy and apart from the initial tariffs, markets have shrugged literally everything off. I feel validated bc between this and the past few jobs reports, the data is finally reflecting that Trump’s policies harm the economy.