In a recent BNN Bloomberg interview, Christopher Hodge, chief economist for the US at Natixis, sounded the alarm: dramatic policy U-turns from the White House and expectations of more on the horizon have plunged US financial markets into turmoil.
Policy U-Turns Rock Markets
Frequent reversals in trade, tax, and regulatory signals have left investors on edge. Unpredictable shifts are fueling volatility, making it difficult for markets to find stable footing from one week to the next.
Business Planning Ground to a Halt
When the rules of the game keep changing, companies struggle to set long‑term strategies. Hodge warns that this environment is eroding consumer confidence and forcing CEOs to hit pause on hiring, expansion, and R&D projects.
Ripple Effects on Global Supply Chains
Supply networks are feeling the strain as sudden policy shifts raise costs and create bottlenecks. Suppliers from Asia to Europe are reassessing contracts, and shipping lanes are growing more unpredictable.
Echoes of Past Administrations
Hodge predicts a playbook similar to the first Trump administration, with big reversals and surprise moves. For global businesses and startups alike, staying agile and building scenario plans could be the key to weathering the storm.
Reference(s):
Economist: Chaotic US policies making it impossible for businesses
cgtn.com
