Trump Blames Biden for Q1 Economic Contraction

The U.S. economy shrank by 0.3% in the first quarter of 2025, marking the first contraction in three years and falling short of economists' expectations. President Donald Trump and his administration attributed the decline to economic conditions inherited from former President Joe Biden, with Trump labeling it the 'Biden overhang' and asserting that the downturn resulted from lingering issues such as weak consumer spending and high inflation in January. White House economic advisers echoed this assessment, emphasizing that poor performance in the early months of the year, attributed to Biden-era policies and external factors, contributed to the negative GDP figure. Critics, however, pointed out that despite inheriting a solid economy, Trump's trade policies and new tariffs have unsettled businesses, driven up imports ahead of tariff implementation, and contributed to market volatility. Additionally, hiring slowed significantly, with job growth in April falling well below expectations, heightening concerns about a potential recession. While the Trump administration predicts an economic rebound once their policies take effect, market and labor data have fueled fears of stagflation.