GBP/BIF Price & Performance (GBPBIF)

The U.S. economy is facing heightened uncertainty as the Federal Reserve Bank of Atlanta's GDPNow tracker predicts a first-quarter contraction of 2.8%. This marks a dramatic shift from earlier forecasts of growth. Consumer spending declines and renewed tariffs on Canadian and Mexican imports are key contributors to this outlook.123

Investor confidence has plummeted as tariffs on imports from Canada and Mexico take effect, while GDP projections signal contraction. The S&P 500 has entered correction territory, down 10% from February highs, erasing $5 trillion in value. Analysts warn that escalating trade tensions could further weigh on economic growth.456

With the Fear & Greed Index at its lowest in a year and the VIX surging 20% in February, investors are turning to defensive ETFs to mitigate risks. The ongoing tech sector decline and heightened economic concerns have amplified market turbulence, prompting a shift toward safer investment options.783