🚨 U.S. Economic Policy Uncertainty Index Hits New All-Time High in 2025! 🚨

🧩 Key Drivers Behind the 2025 Spike:

🔹Extreme tariffs: The second Trump administration raised tariffs on major trade partners — starting at 10%, then 25%, and up to 145% in strategic sectors — increasing input costs and undermining corporate planning.

🔹Debt ceiling reinstated: On January 2, 2025, the debt limit was reset to $36.1 trillion, triggering fears of a technical default amid intense debates in Congress over suspension or repeal.

🔹Monetary uncertainty: The Federal Reserve held rates at 4.25%–4.50% and delayed cuts, partially due to inflation driven by imported goods under high tariffs.

🔹Declining trust in the dollar: Protectionist measures and financial sanctions damaged the dollar’s credibility as a safe haven, prompting investors to seek alternative reserve assets.

🔹Regulatory volatility: Reversals in policies related to AI, antitrust, ESG, and energy created an unpredictable environment for businesses.

🔹Geopolitical tensions: The ongoing Russia–Ukraine war and new crises in the Middle East disrupted global supply chains and heightened risk perception.

🔹Budget deadlocks: Frequent “continuing resolutions” and micro-legislative disputes over spending fueled fiscal volatility.

⚠️ Investors should brace for continued market turbulence and reassess their allocations in equities, bonds, and crypto by applying effective risk management strategies and leveraging advanced metrics.

👉 Explore our Alpha Metrics Collection at alphractal