The state of Trump’s economy is about to come into full view this week | CNN Business
This week could shape the future of the U.S. economy — and everyone’s watching.
A flurry of major reports, decisions, and deadlines are set to land — all of which could impact everything from your job prospects and savings to the prices you pay at the store. Here’s a quick and simple breakdown of what’s happening and why it matters.
1. Big Decisions from the Fed
The Federal Reserve will announce whether it’s cutting interest rates or keeping them steady. Although President Trump has pushed hard for rate cuts, the Fed is expected to hold for now.
Why it matters:
If the Fed cuts rates in the coming months — as many expect — it could make borrowing cheaper, helping homebuyers and businesses. But for now, they’re waiting to see how Trump’s trade policies affect inflation and jobs.
2. Key Economic Data Coming
We’ll get fresh numbers on:
- Jobs – How many new positions were added in July?
- GDP – Did the economy grow last quarter or shrink again?
- Inflation – Are prices going up faster than expected?
- Consumer confidence – How are Americans feeling about their finances?
Why it matters:
These reports give a health check on the economy. If they look strong, it could mean stability ahead. If not, it could signal trouble.
3. Trump’s Trade Policies Hit a Deadline
Friday marks a crucial deadline: the White House must finalize tariff rates for over 200 countries. President Trump has already hinted at sending out letters with new rates — some possibly as high as 20%.
At the same time, Treasury Secretary Scott Bessent is meeting with China to work out a trade deal, while a U.S. court hears arguments over whether Trump even had the legal authority to impose many of these tariffs.
Why it matters:
Tariffs raise the price of imported goods, from furniture to school supplies. Economists say current tariffs are already costing the average American household an extra $2,400 per year. If rates go up even more, it could hit wallets and slow the economy.
4. Tech Giants Report Earnings
Apple, Amazon, Microsoft, and Meta are set to reveal how they did last quarter. So far, most S&P 500 companies have beaten earnings expectations, thanks in part to the AI boom.
Why it matters:
Strong corporate earnings keep the stock market humming. That’s good news for retirement accounts and investment portfolios. It also boosts confidence in Trump’s economic strategy.
5. Consumer Sentiment Remains Cautious
Americans are feeling slightly better about the economy than earlier this year, but concerns remain — especially about inflation and prices at the checkout.
Why it matters:
Consumer spending powers nearly 70% of the U.S. economy. If people are worried and start saving instead of spending, growth can slow fast.
6. Jobs Market Slowing Down
The July jobs report is expected to show the weakest monthly gains since 2010 (excluding pandemic years). The manufacturing sector is losing steam, and fewer people are participating in the labor force — possibly due to Trump’s deportation policies and anti-immigrant stance.
Why it matters:
The job market has been America’s economic backbone for years. But if layoffs rise and hiring freezes continue, it could mark the beginning of a downturn.
In Summary:
This week is jam-packed with high-stakes decisions and reports that could shape the direction of the U.S. economy — and influence everything from Wall Street to your wallet.
Stay tuned. What happens this week could ripple through the rest of 2025 and beyond.
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