Brit Hume Says Economy ‘May Be On Sounder Footing’ Than Originally Thought

Brit Hume said Wednesday that early alarm over recent economic data may have been overstated, and he added that investors quickly regained confidence after an initial market drop.

The U.S. economy shrank by 0.3% in the first quarter of 2025, which marks its first decline in three years as firms accelerated imports before new tariffs came, and consumer spending cooled. During an appearance on “Special Report with Bret Baier,” Hume said the market’s resilience by the close of trading indicated a growing recognition of the economy’s potential stability.

“By the end of the day, it was back up because I think investors began to see the things that you pointed out there, [as] Bret and others were saying, that this is something that may not be repeated in the economy,” Hume said. “It may be on sounder footing than the original number made it appear.”

Hume pushed back on the partisan framing of market performance.

“The president was saying this is Biden’s stock market. Of course, back in January when the market was surging he was saying it was the Trump market,” Hume told Baier. “But the truth is that this is not nearly as bad as it sounded at first.”

Hume said the dip was notable but added that it marked the first such downturn in years and might not signal a lasting trend.

WATCH: 

“When the news first came out, because, as you pointed out, it was the first time in several years we’d had a contraction at all. But there are factors in there that you’ve enumerated that may not well be repeated in the next quarter. So I think the stock market dove on the first of the news,” Hume said. (RELATED: ‘The Real Villain’: Steve Moore Identifies Who Made The Market Tank Friday And Why)

While the U.S. GDP contracted by 0.3% in the first quarter of 2025, this downturn was primarily driven by a surge in imports as businesses and consumers rushed to purchase goods ahead of new tariffs introduced by President Donald Trump. This import surge, which increased by 41.3%, significantly widened the trade deficit, subtracting nearly five percentage points from GDP.

Despite the headline contraction, underlying economic indicators suggest resilience. Consumer spending grew by 1.8%, and business investment saw a robust increase of 21.9%, driven by companies stockpiling inventory and equipment in anticipation of tariff-related price hikes. Additionally, the stock market, after an initial drop following the GDP report, rebounded by the end of the trading day, indicating investor confidence in the economy’s fundamentals.

The market plummeted early in April after Trump announced sweeping new tariffs as part of his so-called “Liberation Day,” triggering panic among global investors. The Dow fell nearly 1,700 points in its worst drop since 2020, while the Nasdaq and S&P 500 posted their steepest losses in years.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.