US President Donald Trump promised an economic renaissance during his first term, but his administration is delivering economic turmoil instead. The situation is reflected in four key charts.
The US stock market, once the only measure of economic performance that mattered to Trump, has seen a significant selloff amid fears of an impending recession. Despite this, other indicators suggest a mixed picture. February’s jobs report showed steady labor growth, but also revealed mass layoffs of federal workers and increased unemployment.
Trump’s focus on Treasury yields as an indicator of the economy’s health is a concern among experts. Lowering these yields could bring financial relief to Americans, but there are snags in his plans, including a global bond selloff triggered by Germany’s recent spending announcements and Trump’s own tariffs may lead to more inflation.
Inflation cooled slightly in February, exceeding expectations, but the outlook remains precarious. If inflation ticks back up, the Federal Reserve might not be able to respond effectively with interest rate cuts. The situation is further complicated by Trump’s mass layoffs of federal workers, which are not yet fully reflected in the jobs report.
Overall, Trump’s economic policies have been criticized for their unpredictability and potential consequences. As the administration navigates these challenges, it remains unclear whether they will deliver on their promise of an economic renaissance or exacerbate the current turmoil.
Source: https://www.vox.com/politics/403838/trump-economy-recession-inflation-stock-market-treasury-jobs