U.S. Economy Contracts Sharply in Q1 2025: Key Factors and Implications
The U.S. economy contracted at an annualized rate of 0.5 percent in the first quarter of 2025, according to the third estimate (BEA).
Ekrem Imamoglu
The Turkish lira plunged as much as 12% to 41 per USD before recovering slightly to trade above 38 per USD, still marking a new record low amid escalating political tensions.
The currency’s sharp decline follows the detention of Istanbul’s mayor, Ekrem Imamoglu—President Erdogan’s main rival—on allegations of fraud and terror, after authorities revoked his university diploma, potentially barring him from running in future elections.
The lira has been under pressure as the central bank continues its foreign exchange interventions while maintaining a cautious policy approach.
Policymakers implemented a 25bps rate cut in March, lowering the benchmark rate to 42.5% as expected.
