from CUI, NBC:
President Donald Trump’s tariff agenda Throwed the world of finance for the loop Most of the past month. on-again, Off-Ain Trade escalation with other countries, especially China – The fallen market and Investors fleeing our stocks in search of a more stable ground. And, as experts and business leaders say that the lack of clarity on tariffs is all challenges as collection itself becomes a challenge, data shows that economic uncertainty is the best over the years.
As Kevin Cresen of the Federal Government of St. Louis pointed out about the EPU:
“It’s a historically unprecedented increase.” Kliesen I said.
To highlight the unprecedented nature of policy uncertainty and financial risk, Baker, Bloom and Davis EPU (7-day moving average), and VIX are over 35 years old for 40 years.
Figure 1: EPU, 7-day centered moving average (blue, left scale), and VIX (right scale). The Orange indicates the Trump administration. Source: PolicyUncEnterty.com and CBOE via Fred.
This post highlights econometric estimates of the macro impact of EPU and VIX rises.
