U.S. Commerce Secretary Howard Lutnick talks reciprocal tariffs, trade deficits, American manufacturing, auto production and the macroeconomy in a wide-ranging interview with FOX Business’ Maria Bartiromo.
U.S. Secretary of Commerce Howard Lutnick was apparently shocked on Friday, after learning that a recent estimate from the Federal Reserve shows the U.S. economy shrinking in Q1.
« Wait, wait, wait, say that again. What? A what? » Lutnick interrupted FOX Business’ Maria Bartiromo after she read the Federal Reserve Bank of Atlanta estimate that gross domestic product (GDP) is expected to contract in the first quarter.
« A contraction? » he continued. « Okay… right here, right now, that is ridiculous. »
COMMERCE SECRETARY HOWARD LUTNICK DEFENDS TRUMP’S TARIFF ENDGAME AGAINST RECESSION FEARS
Lutnick noted he has « absolutely not » spoken to Atlanta Fed President Raphael Bostic about the matter.
U.S. Commerce Secretary Howard Lutnick was shocked that the Federal Reserve Bank of Atlanta expects a contraction of Q1 GDP. (FOXBusiness)
The Atlanta Fed’s GDPNow model estimates a contraction of 2.4% for the first quarter, a slight improvement from its initial estimate of -2.8% on March 3. However, its website notes that the tracker is not an « official forecast » but a « running estimate of real GDP growth based on available economic data for the current measured quarter. »
« We own the economy in the fourth quarter, » Lutnick clarified. « We cut regulation, we get shovels in the ground of this $2 trillion of a commitment to build factories, to build production back to America. You’ve got everybody coming back to America to build. That starts really strong in the third quarter. »
« First and second quarter are sort of a little bit [of] our optimism – egg prices down, interest rates down, energy prices down, » the secretary expanded. « But it is the mess that we were left with. »
Former FDIC Vice Chairman and Federal Reserve Bank of Kansas City CEO Thomas Hoenig talks America’s growth forecast, DOGE spending cuts and future Fed leadership.
He further pressed Bartiromo: « You feel it, Maria. Do you feel a deep, deep pain in the first quarter? I’ve watched your show all along. I don’t remember you saying, ‘Oh my God!’ No, come on. »
The Bureau of Economic Analysis’ advanced estimate for first quarter GDP is planned for April 30.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
