Economic Uncertainty Grows as Tariffs and Federal Layoffs Shape U.S. Outlook

President Trump's trade policies and workforce reductions fuel concerns over inflation, unemployment, and a potential recession.

The U.S. economy added 151,000 jobs in February, but unemployment rose slightly to 4.1%, signaling mixed labor market conditions.
Federal layoffs surged, with over 62,000 government jobs cut in February alone, the highest monthly total since 2020.
President Trump's tariff policies have created uncertainty, with analysts warning of potential inflation, slower growth, and recession risks.
Manufacturing saw modest gains of 10,000 jobs, but sectors like leisure and hospitality lost 16,000 positions, reflecting broader economic challenges.
The Federal Reserve is adopting a cautious approach to interest rate changes, with increased odds of a rate cut by June amid tariff-related economic pressures.