The Trump administration is proposing a new approach to measuring economic growth, igniting discussions around government spending's role in GDP calculations. Experts express concern about the potential implications of this change amidst signs of economic slowdown.

The latest PCE report indicates a slight easing of inflation, with figures showing a 2.5% increase in January. However, consumer spending has unexpectedly pulled back, posing challenges for the Federal Reserve as it considers interest rate cuts.

Inflation eased slightly in January as concerns about President Trump's tariff plans grew. The PCE index, favored by the Federal Reserve, showed a 2.6% annual rate, signaling a potential hold on interest rates for now, despite mixed spending and income trends.

The Federal Reserve Bank of Atlanta's GDPNow indicator suggests a negative 1.5% growth for Q1 2025, driven by weak consumer spending and exports.

The article discusses how 1 in 5 Americans are engaging in 'doom spending' due to concerns about rising prices following new tariffs proposed by President Trump, emphasizing the impact on financial habits.