Economists Say Trump’s First Year Risks Weakening U.S. Economy Over Time

President Trump’s first year back in the White House ended with an economy that, by most conventional measures, looks much like the one he inherited, but economists warn his policies could leave the United States less dynamic and less prosperous over the long run. Unemployment is low, consumer spending is strong and inflation remains stubbornly high but has been gradually improving; tariffs have not produced the manufacturing renaissance Mr.

Trump promised nor the surge in inflation many forecasters feared, and the stock market rose about 16 percent. At the same time, the administration has sought to undermine the Federal Reserve’s independence, fired the head of the Bureau of Labor Statistics, cut funding to universities, intervened in private business deals, taken stakes in companies, threatened executives, restricted immigration, questioned alliances and imposed tariffs on friends as well as adversaries.

Many of those actions are being challenged in the courts, and economists from across the ideological spectrum warn the policies could make the economy less dynamic, the financial system less stable and Americans less prosperous. Mr. Trump’s focus on tariffs came instead of proposals on housing, child care or extending subsidies on federal health exchanges, and public concern about tariffs and prices was reflected in University of Michigan sentiment surveys, in which more than half of respondents mentioned tariffs and expected prices to rise.

Key Topics

Business, Donald Trump, Tariffs, Federal Reserve, Immigration, Budget Deficit