Donald Trump promised to “rapidly defeat” inflation on Day 1, but instead the U.S. economy is now facing new warning signs that Trump’s expensive agenda could trigger even higher inflation. Thanks to Trump’s chaotic new national tax rollouts, economic policy uncertainty is at an all time high, small businesses are suffering, and retailers’ profits are set to plummet. Trump’s record is clear: His disaster of an administration is now tanking global growth to the lowest since 2009 outside the pandemic, weakening the global economy, and steering the U.S. into a recession. 

Here’s a look at how Trump’s expensive economic agenda is hurting American families:

CNN: “Fed Chair Powell gives starkest warning yet on potential economic consequences from tariffs”

“Powell said ‘the level of the tariff increases announced so far is significantly larger than anticipated’ and that the lingering uncertainty around tariffs could inflict lasting economic damage. With Trump’s tariffs putting the economy on a path toward weaker growth, higher unemployment and faster inflation — all at the same time — the Fed is also facing a situation it hasn’t dealt with in about half a century. …

“US stocks tumbled as Powell spoke: The Dow was down 700 points, or 1.7%. The broader S&P 500 fell 2.5%. The tech-heavy Nasdaq Composite slid 3.5%.”

Bloomberg: “While the White House and the world’s financial markets are focused on tariff negotiations with the scores of countries caught up in Trump’s trade war, small and large businesses alike across the US are already feeling the pinch of the duties. …

“[S]ome are putting hiring and expansion plans on hold while they come up with short-term plans to cope with the tariffs. Others are figuring out how tariffs apply along their entire supply chain, with raw materials and finished goods subject to different rates. Then they have to decide whether those costs should be passed on to customers.”

Bloomberg: “Economic Uncertainty Has Never Felt This Uncertain”

“[A]nother monthly US index that factors in disagreement among economic forecasters and expiring tax provisions, as well as uncertainty indexes for all the states, 30 other countries and a global index that comes out with a lag and shows January to have been the most uncertain month on record. …

“[T]he continuing uncertainty about the timing and scale of the tariffs, along with questions about next year’s tax rates and the administration’s messy efforts to cut federal spending, are surely weighing on business investment and other economic indicators. …

“This time around, though, it really feels as if the uncertainty is emanating mainly from one place — 1600 Pennsylvania Avenue in Washington.”

MarketWatch: “Fitch Ratings is citing a severe escalation in the global trade war as the reason for its decision to sharply lower its forecasts for world growth this year. …

“Overall, world growth is projected to fall below 2% this year, which would be the weakest since 2009 excluding the pandemic, the rating agency said.”

Sherwood: “Analysts at Morgan Stanley crunched the numbers and it turns out tariffs are really, really bad for US retailers. …

“On average, earnings per share would decline by 33%, with some companies more exposed than others, the analysts wrote.”

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