The U.S. economy is showing signs of strain as President Trump's actions to shrink federal spending and impose tariffs impact businesses and consumer sentiment.
Funding freezes, firings of federal workers, and the prospect of costly trade wars are raising inflation expectations and stalling business investment plans.
Local economies are bracing for a sudden withdrawal of fiscal support, leading to tax increases or municipal bond offerings to stabilize budgets.
Economists warn that the blunt approach of Trump's policies could bring more uncertainty and have a chilling effect on investment and expansion plans.