Episode 7: Confidence Lost: The Hidden Cost of Unstable Economic Policy

29/04/2025 7 min Episodio 8
Episode 7: Confidence Lost: The Hidden Cost of Unstable Economic Policy

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Episode Synopsis

This week on The Economic Effect, we dive into the growing wave of foreign investors pulling their money out of U.S. markets — and why it matters more than you might think. Host John Silvia, former Chief Economist, explains how these outflows are affecting everything from stock prices to interest rates and even the value of the dollar. What’s behind the shift? New tariffs and unpredictable economic policies are making investors nervous, driving them to safer places like gold and cash instead of U.S. stocks and bonds.
We break down how one policy decision — like a tariff — can ripple through the economy and shake confidence on a global scale. From rising interest rates to falling investor trust, the signals are clear: foreign money is no longer guaranteed to stick around. As confidence in U.S. leadership and economic direction wavers, we’re starting to see warning signs that could point to bigger problems ahead. Tune in to hear why these changes matter for everyday investors, business leaders, and anyone watching the future of the U.S. economy.
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