Trump’s Policies Have Shaken a Once-Solid Economic Outlook

Published On Mar 7, 2025, 5:04 AM

The article discusses the deteriorating economic forecasts in the U.S. attributed to policies implemented by President Trump, particularly relating to tariffs, federal layoffs, and immigration policies. Confidence among businesses and consumers has plummeted, leading to an anticipated slowdown in GDP growth and potential recessions or stagflation. Despite the initial strong economic conditions, economists are revising their outlook negatively due to increased prices and unemployment caused by these changes.

Stock Forecasts

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Negative

With the potential economic slowdown and consumer confidence dropping, companies that rely heavily on consumer spending may face challenges. Sectors like retail and hospitality, which depend on immigrant labor, could see further strain, impacting their stocks.

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Planned layoffs surged in February to the highest level since July 2020, when the U.S. economy was in the midst of the COVID-19 pandemic, according to a new report.

The figure reported on Wednesday is well below economists’ estimates of 140,000 jobs and also more than the prior month’s upwardly revised reading of 186,000.

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