Today's ruling affects the ‘composition' of GDP, markets: Economic advisor

• Q4 GDP came in at a surprisingly weak 1.4% annual rate, attributed partly to the government shutdown and lower-than-expected private consumption.
• Despite the Q4 GDP, other economic indicators like production, manufacturing, business capex, and durable goods orders suggest a much stronger economy, feeling like 4% growth.
• The Supreme Court's tariff ruling introduces uncertainty for businesses regarding refunds and future tariff applications, though the overall macro trade policy is expected to continue.

The discussion revolves around the surprisingly weak Q4 GDP growth of 1.4% for 2025, which is seen as inconsistent with other strong economic indicators like rising production, manufacturing, business capex, and durable goods orders. Both speakers agree the economy 'feels like' a 4% economy, driven by pro-growth policies, despite some concerns about employment and the uncertainty from a recent Supreme Court tariff ruling.