Part 3/7:
Inflation
Inflation, currently a hot topic, is expected to be exacerbated by newly implemented tariffs. Businesses that import goods will face increased costs, and how they manage these costs—either by absorbing them or transferring them to consumers—will directly affect market sentiment and stock performance.
Federal Spending Cuts
Government spending cuts, particularly amidst concerns of a potential layoff of federal employees, may also have dire implications for the economy. With talks of a 20% cut to the federal workforce, the ripple effects on consumer spending and overall economic health could be significant. Estimates suggest that even a modest cut could result in over a million jobs lost, further diminishing consumer confidence and spending potential.