“Companies report widespread concerns about the impact of federal government policies, ranging from spending cuts to tariffs and geopolitical developments,” said Chris Williamson, chief business economist at S&P Global Market Intelligence.
At their last policy meeting in January, Fed officials suggested they may stay on hold for a while given worries about how Trump’s proposed tariffs and mass deportations of migrants, along with other factors, could push upward on inflation.
Asian shares were mixed on Monday after U.S. stocks fell sharply as reports showed the economy may be suffering as consumers and businesses fret over President Donald Trump’s policies.
That helped offset worries about stubbornly high inflation, which could prevent the Federal Reserve from delivering more relief for the economy and financial markets through lower interest rates.
"We have factored rising U.S. tariffs and related countermeasures into our forecasts since December 2024, with trade weakness the primary cause of the projected slowdown in quarter- over-quarter global real GDP growth rates this year.
