Trump Economic Policies Stoke Uncertainty

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The U.S. economy is beginning to show signs of strain as President Donald Trump pushes aggressive spending cuts, mass layoffs of federal workers, and sweeping tariffs on key trading partners.

Businesses are reacting with caution, consumer sentiment is weakening, and state and local governments are scrambling to adjust to a sharp reduction in federal support.
Federal funding freezes, combined with uncertainty over Trump’s trade policies, have created a ripple effect that is weighing on investment decisions, raising inflation expectations, and fueling anxiety about economic stability.

American consumers and businesses are growing uneasy, fearing inflation could rise as President Donald Trump pushes for substantial tariffs. This concern is raising questions about how shifting economic sentiment might impact spending, hiring, and the overall trajectory of the U.S. economy.

“The kinds of changes occurring under Trump are arguably unprecedented, and it’s making people very nervous,” Mark Zandi, chief economist at Moody’s, told CNN.
“If confidence continues to fall for another three months, and consumers actually pack it in, then game over.”