Atlanta Fed Predicts 3% Q1 GDP Decline with New Model

The Atlanta Federal Reserve has unveiled a new GDP estimation model, called GDPNow, designed to provide more accurate projections of economic growth. The model incorporates adjustments for gold trade and is expected to enhance the precision of forecasts, especially in volatile market environments. According to recent estimates, the model projects a negative 3% GDP growth rate for the first quarter of 2025, prompting discussion about potential contributing factors.