Five Takeaways from the First Quarter GDP Report

Chart Source: U.S. Bureau of Economic Analysis

GDP Growth Was Driven by a Jump in Federal Government Spending

Spending by the federal government fell at a 16.6% annual rate in the 4th quarter. This was partly driven by the DOGE layoffs, most of which first took effect in the 4thquarter. However, it was also partly driven by the government shutdown at the start of the quarter, which continued until the middle of November. The contraction from the DOGE cuts is not being reversed...