US Economy Contracts 0.3% in Q1 2025

The U.S. economy officially contracted by 0.3% in the first quarter of 2025, marking its first decline in three years and intensifying concerns about a potential recession. Financial markets reacted negatively, with the Dow Jones Industrial Average dropping over 400 points and significant sell-offs in cryptocurrency markets. President Trump attributed the downturn to policies inherited from the Biden administration, denying that his own tariffs and trade policies contributed to the contraction. However, economists cited the disruptive effects of Trump's tariffs, which spurred a surge in imports and increased business uncertainty and costs. Private payroll growth was also weaker than anticipated, further dimming the economic outlook. While some measures of domestic demand remain solid, ongoing trade tensions and policy volatility have clouded forecasts for future growth.