Economic Uncertainty, Debt Crisis Warnings and Oscar Night 2025: The Week of March 3rd
Trump’s economic moves are shaking things up big time. Consumer spending just took its biggest dive in four years, and hedge fund giant Ray Dalio is warning of a debt “heart attack” within three years if deficits arenāt tackled. Meanwhile, Trumpās crypto play, adding digital assets to a US strategic reserve, sent token prices soaring. But itās not all green candles: New tariffs on Canada, Mexico, and China could drive car prices up by $12K, hitting consumers hard. And in Hollywood? The Oscars played it safe – big wins, emotional speeches, and (for once) not much politics.
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Worries mount that Trump agenda is testing economy’s resilience: The US economy has proved pessimists wrong so many times, itās tempting to think nothing can stop it. President Trumpās first-month policy blitz is putting that resilience to the test. Consumer spending, which accounts for more than two-thirds of demand, declined 0.2% in January, the Commerce Department reported Friday, instead of rising as economists expected. It was the largest monthly drop in four years.
Dalio warns of US debt crisis ‘heart attack’ within three years: Ray Dalio, the billionaire founder of hedge fund Bridgewater Associates, has a warning for the Trump administration: commit right now to reducing the deficit or risk a major debt crisis within three years. Dalioās warning comes as Trumpās team is grappling with the twin goals of maintaining large tax breaks while also reducing an annual deficit that most recently reached $1.8 trillion.
Crypto prices jump as Trump names tokens included in strategic reserve: Cryptocurrency prices jumped after President Trump said a US strategic reserve of digital assets would include bitcoin as well as lesser-traded tokens, providing a jolt to an industry that has cosied up to the White House. Trump, who has courted the crypto industry, wrote on his Truth Social account on Sunday that the strategic reserve would āelevate this critical industry after years of corrupt attacks by the Biden administrationā.
Car prices are poised for $12,000 surge on Trump’s new tariffs: Impending tariffs on Canada and Mexico risk driving up US car prices by as much as $12,000, further squeezing consumers and wreaking havoc across the intricate web of automotive supply lines spanning the continent. The cost to build a crossover utility vehicle will rise by at least $4,000, while the increase would be three times that for an electric vehicle examined in a new study from Anderson Economic Group, an automotive consultant in East Lansing, Michigan. And those costs would likely be passed on to consumers, the study found.
Trump heads toward tariff barrage on Canada, Mexico, China: President Donald Trump is on the verge of slapping new tariffs on Canada and Mexico while doubling a levy on China, moves that would dramatically expand his push to revive domestic manufacturing, tap new revenues and rebalance ties with the biggest US trading partners.
The 2025 Oscar takeaways: At Sunday night’s Oscars, there was one big winner, a lot of heartfelt speeches, and not much politics. Here are eight things to know.
We hope you have a productive week! Check out more insights from the Vested team here.
