The U.S. economy, after nearly five years of growth, is showing signs of strain. Layoffs are increasing, hiring is slowing, and inflation is rising. While these issues might have emerged regardless of leadership, President Donald Trump’s economic policies have intensified concerns.

Uncertainty surrounding tariffs has left businesses and consumers unsettled, contributing to inflation worries. Additionally, Trump’s immigration policies are affecting key industries like agriculture, construction, and healthcare, making labor shortages worse. Federal job cuts and reduced government aid could further impact economic stability.

Consumer spending dropped in January, marking the steepest decline since 2021, while inflation hit 3% over the past year. Consumer confidence also took a major hit, with February seeing the sharpest drop since 2009. Meanwhile, layoffs reached their highest February level since the Great Recession. A Federal Reserve projection suggests a potential economic contraction of nearly 3% this quarter.

Despite challenges, the U.S. economy remains resilient. Businesses welcome deregulation and tax cuts, and Federal Reserve Chair Jerome Powell remains cautiously optimistic. However, with uncertainty surrounding tariffs, immigration, and job cuts, economic stability remains uncertain in the months ahead.