Trump's Economic Strategy Aims for a Strong 2025 Second Half

Trump is positioning the US economy for a strong second half of 2025, according to Hennion & Walsh Asset Management President and CIO Kevin Mahn. Mahn believes that the economy is experiencing a "pause" due to uncertainty surrounding tariffs, but expects a strong rebound in the second half of the year. Mahn attributes this optimism to Trump's policies and the overall strength of the US economy.

Kevin Mahn, President and CIO of Hennion & Walsh Asset Management, believes the U.S. economy is poised for a strong rebound in the second half of 2025. Mahn attributes this optimism to President Trump's recent decision to roll back certain tariffs and pause others, which has given investors a confidence boost [1].

However, the U.S. economy has been characterized by unprecedented levels of uncertainty and volatility in 2025. The S&P 500 has advanced 1% year to date, a remarkable recovery after sliding into correction territory in March. Despite this, several esteemed financial figures have expressed concerns about the administration's trade policies. Hedge fund billionaire Bill Ackman has warned that these policies could cause an "economic nuclear winter," while JPMorgan CEO Jamie Dimon has cautioned that tariffs will increase consumer prices and slow economic growth [1].

The first-quarter GDP report indicated that the U.S. may be closer to recession than expected, with a tariff-driven spike in imports dragging real growth down 0.3% annualized. Additionally, consumer sentiment in May plummeted to its second-lowest level in history, and inflation expectations rose to their highest level since 1981 [1].

Despite these challenges, Mahn remains optimistic about the U.S. economy's resilience and the potential for a strong rebound in the second half of 2025. He attributes this to the overall strength of the U.S. economy and the positive impact of Trump's policies on investor confidence.

Wall Street analysts have become increasingly pessimistic about the stock market, with many downwardly revising their year-end targets. The median year-end target for the S&P 500 is now 5,900, implying a 1% downside from the current level of 5,945 [1]. However, this is subject to change as more economic data becomes available and trade policies evolve.

Investors should be prepared for volatility in the coming months, as several key economic reports are scheduled to be released. These include the second estimate for Q1 GDP on May 29, consumer spending and PCE price-index inflation on May 30, and job openings and payroll figures in early June [1].

In conclusion, while the U.S. economy faces significant challenges and uncertainty in 2025, Mahn's optimism is rooted in the strength of the U.S. economy and the potential for a rebound in the second half of the year. Investors should remain vigilant and prepared for volatility as key economic data is released.

References:

[1] https://www.mitrade.com/insights/news/live-news/article-8-830614-20250520
[2] https://www.marketscreener.com/quote/stock/DATAVAULT-AI-INC-46404129/news/Datavault-Ai-Inc-Reaffirmed-Earnings-Guidance-for-Second-Half-of-2025-and-for-Year-2026-49968407/