What soaring uncertainty means for the U.S. economy
President Donald Trump's tariff agenda has thrown the financial world for a loop for much of the past month. The on-again, off-again trade escalation with other nations — most notably China — has upended markets with investors fleeing U.S. stocks in search of more stable ground. And as experts and business leaders say the lack of clarity around the tariffs is every bit a challenge as the levies themselves, data shows economic uncertainty is the highest it has been in years.
Economists have a way of quantifying economic chaos, as multiple measures show just how uncertain the market and the economy in general are. One measure, the Economic Policy Uncertainty index from researchers at Stanford and Northwestern universities, uses an analysis of news reports, tax code data and economic forecast disagreement.
According to the EPU index, uncertainty spiked in March to levels last seen during the Covid pandemic.
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