US President Donald Trump’s sweeping policy changes are set to take a toll on the economy, but it remains unclear how severe the impact will be. The trade war has already unsettled consumers and taken a toll on economic growth, while his “big, beautiful” tax bill is expected to widen the country’s deficit.
The underlying health of the broader economy will depend on whether demand for goods, services, and homes continues to chug along or falls off. New data due this week should give Wall Street and the Federal Reserve a better sense of the fallout from Trump’s policies.
Several consumer surveys, including two new ones, are set to be released. The Conference Board is expected to release its consumer survey for May on Tuesday, while the University of Michigan will follow with its revised version later in the day. These surveys will provide insight into Americans’ attitudes toward the economy and their spending habits.
The Commerce Department is also set to release data on household spending, income, and inflation on Friday. This data will give an idea of how consumers are responding to Trump’s policies.
The housing market has been impacted by elevated mortgage rates, concerns over the economy, and volatility in financial markets. New data this week should show if buyers will get squeezed further.
Fed officials have signaled that they prefer to stand pat as they wait for clarity on Trump’s policies. Market observers will be watching Fed officials’ public comments and minutes from their latest policy meeting, which will provide insight into interest rates in the coming months.
Overall, it will become clearer by week’s end how the US economy is holding up amid Trump’s sweeping policy changes.
Source: https://edition.cnn.com/2025/05/27/business/economy-trump-tariffs-data