WASHINGTON—The Department of Commerce this morning announced its revised estimate for first-quarter real gross domestic product (GDP) growth was worse than originally projected, with the economy contracting 1.5%. Personal savings fell $420 billion, and the Federal Reserve’s preferred inflation metric was 3.5 times its target rate. 

EJ Antoni, research fellow in regional economics with The Heritage Foundation’s Center for Data Analysis, released the following statement Thursday on the downward revision: 

“America’s economic situation is worse than the Biden administration originally estimated and the initial data for the month of April from the Census Bureau and Bureau of Labor Statistics points to continued trouble in the second quarter. The blame for this economic contraction lays squarely at the feet of the Biden administration, Congress, and the Federal Reserve. 

 

“This administration’s curtailment of energy production has artificially increased costs on just about everything, while the Fed’s monetary malfeasance is fleecing the American people through the hidden tax of inflation. We are experiencing the real cost of trillions of dollars in government spending financed by printed money. These policies have pushed the country towards recession.” 

Joel Griffith, research fellow in financial regulations with The Heritage Foundation’s Roe Institute, released the following statement Thursday: 

“The Biden administration says the economy shrank by even more than initially estimated due to a ‘resurgence of COVID-19 cases’ and a decline in ‘government pandemic assistance payments.’ This spin marks a continued refusal by this administration to admit the pain felt by families and businesses today is directly related to misguided, unnecessary—and in many cases, unlawful—restrictions on personal activities, community life, and commerce under the guise of public health, combined with the massive federal spending and central bank money printing in a unprecedented, negligent attempt to mask over the consequences. We are now feeling the results with a shrinking economy and soaring prices.”