APAC Daily Chart Book

January 7, 2025

United States

The economic policy uncertainty indices for December have been updated and show that the surge in uncertainty following Donald Trump’s election in November was maintained in December. Economic policy uncertainty is already above the average seen in the first Trump administration pre-COVID. Trade policy is the main driver of this uncertainty, with markets hoping for greater clarity on tariffs following the inaugural later this month. Global economic policy uncertainty was also elevated in November (series published with a longer lag) and helps explain USD strength as the USD benefits from safe-haven flows into USD assets. Elevated levels of uncertainty can be expected to weigh on US and cross-border investment.