Trumpâs Economic Outlook: Policy Shifts and Early Impact

Donald Trump ’s presidency has already left a profound mark on the U.S. economy, reigniting debates over tariffs, inflation, unemployment, and the broader economic trajectory.

Inflation, a persistent concern when Trump took office, has become even more precarious under his policies.

In 2025 , inflation hovered around 34% , down from its 2022 peak but still above the Federal Reserve's 2% target.

In February 2025 , the S&P 500 declined 3% to 5,859.43 , the Nasdaq Composite fell 4% to 18,607.49, and the Dow Jones Industrial Average dropped 2.9% to 43,398 .

The combination of rising prices, job losses, and geopolitical friction is eroding the optimism that accompanied Trump ’s return, replacing it with caution and unease.