【Boss Economics World】Trump Tariffs + Fed Inaction = March 2025 Economic PAIN

hey folks it's your boy the boss economist back with another no holds barred takedown of the economic clown show today we're diving into the latest mess March 2025's dismal jobs report Trump's tariff tantrum and the Federal Reserves masterclass in doing absolutely nothing while the economy burns buckle up because your government is driving this economy straight into a ditch and I'm here to call it like I see it let's kick things off with the headline disaster US employers added a measly 138 000 jobs in March 2025 down from 150 000 in February according to Bloomberg's Economic survey now if you're thinking hey that's still growth right hold your horses because this is the slowest three month average job growth since October 2224 and guess what the unemployment rate is stuck at 4.1 percent which might sound stable but it's a flashing neon sign that businesses are slamming the brakes on hiring why because economic outlook is bleaker than a horror movie Marathon and it's all thanks to you guessed it government mismanagement now let's zoom out and look at the bigger picture personal spending barely budged last month after a January slump disposable income growth softer than a melted ice cream cone and consumer sentiment in March 2025 it tanked faster than a LEED balloon with fears of inflation spiking like a bad fever folks this isn't just a soft patch this is the economy screaming help I'm drowning and what's the government doing oh just pouring more fuel on the fire with tariff threats and trade wars brilliant speaking of fuel on the fire let's talk about President Trump's latest economic genius move a massive tariff salvo set to hit on April 2 2025 this guy is slapping blanket duty increases on foreign imports like he's playing whack a mole at the arcade his stated goal reverse trade imbalances spark investment in the US and spur domestic output of critical goods sounds noble right but here's the kicker when asked by NBC News on March 29 2025 if he cared that automakers might Jack up car prices in response to tariffs on imported vehicles Trump shrugged and said I couldn't care less wow folks leadership at its finest now let's break this down for the regular folks out there trying to buy a car without selling a kidney tariffs on imported vehicles don't just hurt foreign automakers they hurt you the consumer The Peterson Institute for International Economics Pi estimated in a 2024 report that Trump's previous tariff proposals could add 10700 dollars to the average cost of a new car in the US and with this new even bigger tariff package analysts at Goldman Sachs predict in a March 2025 outlook that car prices could jump by as much as 10% or $4,000 per vehicle by q 3 2025 that's not spurring domestic output that's pricing hard working Americans out of the market and it's not just cars The National Retail Federation NRF warned in a March 2025 report that Trump's tariffs could increase costs for US households by 78 billion dollars annually hitting everything from clothing to electronics so while Trump's out there playing tough guy on trade the average American family is stuck choosing between groceries and a new pair of shoes for their kid but hey who cares right certainly not the guy in the White House now let's pivot to the Federal Reserve because if there's one thing they're good at it's sitting on their hands while the economy implodes Fed Chair Jerome Powell is set to speak right after the job's data drops on March 28 2025 and you can bet your bottom dollar he'll serve up the usual word salad we're monitoring the situation closely we remain data dependent blah blah blah meanwhile inflation is still running hot core PCE inflation was 2.8 percent in February 2025 according to the Bureau of Economic Analysis and Trump's tariffs are about to make it worse the feds own research published in a March 2025 working paper estimates that a 10 percent tariff height could boost US inflation by 0.5 percentage points within a year but hey why rush to lower interest rates when you can just watch the chaos unfold right here's the deal the feds in a bind of their own making back in 2021 to 2022 they kept rates too low for too long fueling the inflation fire then they jacked up rates so fast in 2023 to 2024 that they nearly broke the economy remember the regional banking crisis of 2023 now with inflation still above their 2% target and tariffs threatening to push prices even higher they're paralyzed the CME Fedwatch tool shows a 75 percent probability of no rate cut at the April 2025 meeting and markets are pricing in just 125 basis point cut for the entire year translation borrowing costs stay high businesses stay cautious and job growth stays in the toilet thanks Fed now let's zoom out to the global stage because Trump's tariff tantrum isn't just America's problem it's the world's problem take Canada for example our neighbors to the north are bracing for impact as Trump's tariffs threaten to choke their exports data from Statistics Canada shows that exports to the US surged in December 2024 in January 2025 as exporters tried to front run the tariffs but the bank of Canada warns this is just a pull forward effect with weakness looming ahead and with a federal election underway Canadian politicians are scrambling to look tough on trade while their economy takes a hit conservative Leader Pierre Polivers promise on March 30 2025 to scrap capital gains taxes on reinvested proceeds sounds like a desperate bid to juice investment in a tariff ravaged economy over in Europe the European Central Bank ECB is sweating bullets eurozone inflation is expected to slow to 2.2 percent in March 2025 for Bloomberg's economist survey but Trump's tariffs could throw a wrench in their plans to cut rates ECB President Christine Lagard has already hinted in a March 2025 speech that external shocks read US tariffs could delay monetary easing and let's not forget the eurozone's most indebted countries Italy and France are facing credit assessment reports from Fitch and Scope Ratings on 4 April 2025 and a tariff induced slowdown could make their debt burdens even uglier and in Asia factory activity data from Japan South Korea and China do out on April 1 2025 will show just how much Trump's trade war is hurting global supply chains China's Saixin manufacturing PMI is a key one to watch despite a stimulus package in early March 2025 analysts at Namora warned that tariffs could shave 0.7 percent off China's GDP growth in 2025 meanwhile the bank of Japan's Tankin survey is expected to show manufacturers staying optimistic but their capital investment plans could take a hit if US demand dries up folks this is what happens when one country's government decides to play economic Rolette everyone loses here's the bottom line folks the economy is slowing jobs are stalling and prices are rising and it's not because of some mysterious market forces it's because of government incompetence Trump's tariffs are a sledgehammer to consumer wallets in global trade the feds indecision is a death sentence for small businesses and foreign governments are too busy elegineering to fight back this is a masterclass in how to tank an economy and your leaders are acing the course now for my finance pros out there let's talk data the SNP 500 is down 8 percent year to date as of March 2025 per Bloomberg reflecting investor fears of a tariff driven slowdown the US 10 year Treasury yield has spiked to 4.5 percent signaling bets on higher inflation and tighter Fed policy and the Conference Board's Consumer Confidence Index it plunged to 92.3 in March 2025 the lowest since mid 2023 these aren't just numbers folks they're warning sirens so what's the fix first ditch the tariffs The World Trade Organization estimates that global trade could shrink by 1.2 percent in 2025 if Trump's policies go unchecked hardly the way to spur domestic output second the Fed needs to wake up and cut rates even if it means tolerating a bit more inflation in the short term the alternative is a full blown recession and the Fed's own models predict a 60 percent chance of 1 by q22026 if they stay on this path for their March 2025 projections and third governments worldwide need to stop playing political games and start coordinating on trade and monetary policy but hey I'm not holding my breath after all this is the same crew that brought us the 2023 banking crisis and the 2024 inflation spike here's my message to you the hard working folks watching at home you deserve better than this economic clown show your government's job is to make your life easier not harder but right now they're doing the exact opposite so share this video hit that like button and let's keep calling out the nonsense until someone in Washington or Ottawa or Brussels finally listens this is boss economics world and I'm your boy the boss economist signing off stay sharp and don't let the suits fool you