Economic Uncertainty Grows.

In the early months of President Donald Trump’s second term, economic optimism has given way to growing uncertainty and fears of recession. Despite his administration’s claims of ushering in a “golden age,” data shows the U.S. economy has slowed for the first time in three years. Economists pinpoint Trump’s sweeping tariffs on 75 countries as the main driver of the downturn, with major reductions in shipping and business activity already evident. Consumer and business confidence has eroded, with expectations of rising inflation and constrained access to credit. While Trump has defended his policies and blamed the economic malaise on inherited conditions from the Biden administration, polls indicate declining public approval of his performance. The Federal Reserve, facing the dual threat of inflation and economic slowdown, is in a difficult position regarding interest rates. Despite job market resilience, the broader economic impact of federal spending cuts and trade tensions with China—where retaliatory tariffs have escalated—adds to the uncertainty. Advisers like Newt Gingrich suggest Trump still has time to recover if his economic strategies bear fruit by 2026. However, growing anxiety among investors, businesses, and voters reflects a precarious economic and political outlook.

Source: The Washington Post