March 3, 2025
Newsweek recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing the concerning economic news President Donald Trump received just one day before his first address to Congress in his second term.
On March 2, 2025, the Federal Reserve Bank of Atlanta revised its Q1 2025 GDP estimate to -2.8%, signaling a slowdown, partly due to a decline in manufacturing and concerns over tariffs and reduced consumer spending. Trump’s announcement to resume tariffs on Canada and Mexico added to economic uncertainty, contributing to a 500-point drop in the Dow. Experts warned that these factors could lead to a recession if the GDP continues to decline.
“The Trump Administration ran on a campaign of strong growth and low inflation, yet economic indicators show a slowing economy, greater consumer uncertainty, and spike in inflation. On Friday, the February jobs report will also be released, and if it is weak, this will further support a slowing economy,” Williams adds.
While Trump campaigned on reducing inflation and boosting economic growth, early indicators show rising consumer uncertainty and inflation. The full impact of tariffs and other policies will likely become clearer after their implementation.
