The Indicator from Planet Money Tariffs. Consumer sentiment. Cape Ratio. Pick The Indicator of The Year!
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Dec 19, 2025 What a year 2025 was for the U.S. economy! Consumer sentiment hit alarmingly low levels, while tariffs surged to their highest point in nearly a century, stirring legal debates and market chaos. Meanwhile, the CAPE ratio raised eyebrows as it reflected pre-dot-com bubble valuation levels, hinting at potential long-term downturns. The hosts engage in a lively ‘Family Feud’ format, grappling over which economic tale truly defined the year. Tune in for the experts' insights and predictions!
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Widespread Consumer Pessimism
- Consumer sentiment plunged to near-historic lows in 2025, reflecting deep public pessimism about jobs, prices, and housing.
- Darian Woods and Kenny Malone highlight that sentiment acts as an early warning signal for broader economic stress.
Tariff Drama And Lawsuits
- Greg Rosalsky recounts the 2025 tariff drama: impositions, pauses, lawsuits, and market volatility with vivid examples like Costco's lawsuit.
- He frames the sequence as a continuing, high-drama story that kept affecting markets and policy debates.
Tariffs Reshaped Trade Dynamics
- Tariffs dominated economic headlines in 2025, spiking effective rates from about 2.5% to 16.8% and unsettling markets and businesses.
- Greg Rosalsky notes the tariffs were historically large and created legal and economic uncertainty that is still unfolding.