US economy under pressure: Will Trump boost the markets again?
The US economy is showing changes under Trump's policies while the stock market continues to weaken. Current analyzes and forecasts.
US economy under pressure: Will Trump boost the markets again?
The economic situation in the USA remains tense. Despite some positive signals, a new all-time high in the stock market was not expected quickly. Analysts say the government may step up its push for new highs, but policymakers can't wait forever for the stock market to recover. The question therefore remains how quickly the government will respond and whether it could repeat the scheme of Donald Trump's first term to stabilize and strengthen the economy. ( stock3 )
Since Trump took office, US economic policy has changed fundamentally. Various economic institutes are forced to regularly adjust their forecasts. A key indicator of economic performance is gross domestic product (GDP). Although the US economy experienced a recovery following the impact of the corona pandemic, it began to weaken at the end of 2024. Trump's aggressive tariff policies led to a backlash that subsequently affected economic growth. The International Monetary Fund (IMF) then lowered the growth forecast for 2025 from the original 2.7% to 1.8%. ( ZDF )
Inflation and consumer sentiment
In 2022, inflation fell under the Biden administration and at the start of Trump's presidency, but rose again in June. Consumer sentiment has suffered greatly since Trump took office, particularly among Democratic and independent voters. What is particularly striking, however, is that Republican sentiment has improved in recent months, which could be due to noticeable guidance from Trump's policies.
Trump's tariff policy also had far-reaching effects on stock markets worldwide, with the S&P index temporarily losing over 13%. After the announcement that tariffs would be suspended, there was a temporary recovery in the markets, but this remained below the levels seen when Trump took office. It remains to be seen how the political and economic conditions will develop in the future and what measures the government will take to ensure economic stability.