U.S. economy faces declining investor confidence and challenges

The U.S. economy is facing new challenges as investor confidence declines due to uncertain trade policies and government instability. Growth estimates have been revised down from 2.2% to 2% amid rising tariffs and market volatility. Initial optimism about the economy has faded, with the S&P 500 index dropping 4% since the start of the year. Tariffs on major trading partners are causing confusion, leading companies to postpone investments. Government instability, including mass firings in the Department of Government Efficiency, has added to economic concerns. Economists are adjusting growth forecasts, reflecting a shift from earlier optimism to a more cautious outlook.