The U.S. economy is expected to show resilience or show signs of a cooldown this week, as President Donald Trump’s tariffs steer the nation towards a trade policy untested in recent history. A fresh report on GDP on Wednesday will offer the latest look at economic health, with economists expecting GDP to grow at 2.3% on an annualized basis over three months ending in June. The Federal Reserve will announce its latest decision on the level of interest rates, with investors pegging the chances of interest rates holding steady at an overwhelming 97%. The Fed has adopted a wait-and-see approach as it observes the effects of Trump’s tariffs, and a decision to hold interest rates steady would indicate persistent concern among Fed policymakers about the possibility of substantial inflation as a result of the tariffs. The federal government will release a jobs report on Friday, offering a lens into hiring decisions made by employers and their sense of confidence in the economic outlook. The policy remains in flux, with a federal appeals court set to hear oral arguments on Thursday after a pair of rulings cast doubt over the emergency authority invoked by Trump to impose so-called “reciprocal tariffs.”
A significant week of economic data set has been used to evaluate Trump’s tariffs.
