MTC Market Insights

May 2, 2025

The Cost of Liberation

Key Takeaways

• April was marked by heightened market volatility due to trade policy developments, particularly the tariffs announced on Liberation Day (1).

• The Federal Reserve reiterated patience, but rising economic uncertainty over the impact of tariffs raised prospects for future rate cuts (1).

• Preliminary first quarter U.S. GDP declined but appeared primarily attributable to a rise in imports and not weakness in the consumer (2).

Sources: 

• 1 Factset 

• 2 Bureau of Economic Analysis