Wall Street trembles: Trump's policy endangers economic growth!

Wall Street trembles: Trump's policy endangers economic growth!

USA - The mood on Wall Street is currently tense. US President Donald Trump is criticized because analysts classify his inconsistent action in economic issues as extremely problematic. So far, the President has taken over the US economy from a strong starting situation, with low unemployment and high growth. However, this positive starting position is in a strong contrast to the current reactions of the markets. According to OE24, an analyst Trump describes as "anxious chicken", which in turn indicate considerable uncertainties.

The US exchanges show negative trends: The Dow-Jones index fell by 1.3 %, the S&P 500 by 1.4 %and the NASDAQ index even lost almost 2 %. These uncertainties could lead to further market volatility in the long term. Critics warn that Trump's unpredictable politics endangered confidence in the US economy as a whole. Regardless of the original strength of the economy, which in 2024 had a GDP growth of 2.7 % and an inflation rate of 2.9 %, there is now a growing concern about Trump's future economic decisions.

Trump and the US economy

At Trump's taking office, Joe Biden believed that he left him the strongest economy in the world. This assessment is described by experts as a "gold lily of the valley scenario", which includes moderate growth rates, low inflation and healthy interest. The discrepancy between this starting position and the current developments can be attributed to Trump's redesign of US economic policy. The business institutes had to adapt their forecasts because the stock markets sometimes suffered strong fluctuations.

The GDP growth forecast for 2025 is currently 1.7 %, but the International Monetary Fund (IMF) has already reduced this forecast due to uncertainties from originally 2.7 % to 1.8 %. Trump's worrying political decisions, especially his customs policy, have contributed significantly to the current market situation. Consumers are optimistic, but the consumption mood has reached a low level, similar to three years ago. In addition, US Federal Research chief Jerome Powell warned of rising prices that could be triggered by the announced tariffs.

outlook for the future

It remains to be seen how the economic situation will develop in the coming months. Trump's "America First" policy carries risks that could not only affect the US economy, but also the global markets. From mid -2025, new tariffs could increase inflation by 1 % and result in further interest rate increases through the Federal Reserve. In view of these uncertainties and the emerging difficulties, the pressure on Trump could grow to restore trust in the US economy. Experts are already warning of the potentially negative effects of these political interventions on the United States economy.