This week in Trumponomics: Maybe the Biden economy wasn't so bad after all?

Published On Mar 1, 2025, 10:00 AM

The article discusses the shift in consumer and investor sentiment following Donald Trump's presidential win, illustrating a decrease in consumer confidence and market performance despite initial optimism about economic improvements. Consumer confidence has dropped significantly, and investor sentiment is at low levels, signaling concern over Trump's policies and potential economic recession. Key indicators, including drops in consumer spending and rising unemployment claims, suggest challenging economic conditions ahead, with forecasts indicating possible GDP contraction. Trump's tariff threats and economic management are under scrutiny, and increasing apprehension is evident within the investor community.

Stock Forecasts

SPY

Negative

The decline in consumer confidence and calls for a potential recession, along with disappointing economic forecasts, suggest caution for investors. If these economic issues continue, companies dealing with tariffs or highly impacted by consumer spending may see negative ramifications.

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Ongoing tariff threats from Washington and potentially sweeping government job cuts have darkened consumers’ mood and may be weighing on an otherwise mostly healthy economy. Data released Wednesday showed that consumers slashed their spending by the most since February 2021, even as their incomes rose. On a positive note, inflation cooled, but President Donald Trump’s threats to impose large import taxes on Canada, Mexico, and China -- the United States’ top trading partners -- will likely push prices higher, economists say.