U.S. Economy Faces Uncertainty Amid New Policy Shifts
Source: dmifinance.in Economic Growth Stumbles Amid Policy Changes The U.S. New Policy Shifts, which experienced a strong post-pandemic recovery, is showing signs of a downturn. Recent economic data from January indicated a robust 2.8% inflation-adjusted GDP growth in 2024, slightly below the previous year’s 2.9%. The labor market had remained resilient, with an expansion of 143,000 jobs and a 4% unemployment rate—the strongest four-year labor market performance since the late 1960s. Capital markets also saw impressive gains, with the S&P 500 more than doubling in value over the recovery period. While inflation peaked at a three-decade high, it had declined to within half a percentage point of the Federal Reserve’s target by January. Despite this stability, projections for 2025, which initially suggested continued growth between 2.3% and 2.7%, have been disrupted by recent policy shifts. The administration has moved forward with substantial tariff increases on major trade par...