
Trump's Second-Term Economy: Slow Hiring, Persistent Spending, Tariffs in Play
In the first year of Trump’s second term, the economy showed resilience in spending and overall growth after a tariff-driven dip, but job creation slowed to its weakest pace outside recessions since 2003, keeping the labor market under strain while inflation remained above the Fed target. Federal employment fell sharply as efficiency measures trimmed payrolls, and while consumer spending stayed strong—though in a K-shaped pattern favoring higher-income households—the pace of hiring and policy uncertainty suggest risks to sustained growth ahead.




