2025 Greatest Hits: The Most Popular Articles Of The Past Year And A Look Ahead

Political/Tariffs - The November 2024 election results and the assassination attempt on Trump were significant political events that led to the implementation of transformational trade policies, including massive tariffs on most US trade partners, which disrupted decades of conventional trade policy [3][6]. - The initial surge in trade uncertainty due to Trump's tariffs faded, and recession fears dissipated as new trade deals emerged, benefiting the US economy without significant inflation passing through to consumers [8][10][12]. - The US collected nearly $400 billion in annualized tariff revenues, which could have been used to lower the budget deficit, although the US started fiscal 2026 with the largest budget deficit on record [12][14]. Technological/AI - The year 2025 saw significant advancements in AI technology, with companies like Nvidia experiencing substantial growth, reflecting continued investment in AI [16][17]. - AI adoption reportedly increased, although concerns about rising unemployment, particularly among youth, emerged as a potential risk to the labor market [20]. - The AI sector faced challenges in the second half of the year, with concerns about returns on investment and the risk of a bubble leading to a downturn in stock prices [26][30]. Financial/Central Bank Credibility - The US fiscal situation deteriorated, with total US debt rising by over $2 trillion to a new high of $38.4 trillion, leading to a downgrade by Moody's from Aaa to Aa1 due to increased government debt and reduced tax revenues [46][48][44]. - The Federal Reserve resumed rate cuts and restarted quantitative easing, indicating a shift in monetary policy amid rising political pressure and economic challenges [52][112]. - The stock market experienced a dramatic rebound, closing at all-time highs, while precious metals like gold and silver saw significant price increases, reflecting investor concerns about fiscal and monetary challenges [54][113]. Geopolitical - Geopolitical tensions escalated, particularly with the ongoing war in Ukraine and a new cold war between the US and China, focusing on technology and semiconductor self-sufficiency [56][61]. - Europe began rearming itself, marking a significant shift in defense spending in response to geopolitical threats [59]. - The tech race between the US and China became a central theme, with implications for global economic stability and security [63].