---
title: "Markets & Economic Update for May 2025: Policy Uncertainty Looms"
description: Each month, senior leaders of Hancock Whitney’s Asset Management team discusses the latest news and events that impact markets and the economy - May 2025.
---

[News and blog articles from Hancock Whitney Bank ](https://www.hancockwhitney.com/insights)

# [Markets & Economic Update for May 2025: Policy Uncertainty Looms](https://www.hancockwhitney.com/insights/markets-economic-update-for-may-2025)

 Written by [Hancock Whitney Asset Management](https://www.hancockwhitney.com/insights/author/hancock-whitney-asset-management) | May 8, 2025

Each month, senior leaders of Hancock Whitney’s Asset Management team discusses the latest news and events that impact markets and the economy.

 

### **May 2025 Markets and Economic Outlook Webinar**

 

### **This Month:**

The team unpacks April's market volatility, sparked by an aggressive tariff rollout and growing signs of economic softening. From a flat GDP reading to labor market frictions, the call highlights a fragile but not faltering U.S. economy. Inflation remains surprisingly tame, but policy uncertainty looms large.

#### **Key Highlights**

- **GDP stalls as trade dynamics shift** – The economy posted a -0.3% GDP print for Q1, dragged lower by a rush of pre-tariff imports. Strip out the noise, and underlying demand remains modest but intact.
- **Labor market cooling** – Job creation is slowing with a fragile supply backdrop. Self-deportation and restricted immigration are reducing workforce availability, leaving the market more vulnerable to shocks.
- **Inflation eases—Fed on hold** – March’s zero core PCE print was a surprise. While that supports the case for Fed cuts later this year, policy remains restrictive, and the Fed is in no rush to act.
- **Tariff shock causes market whiplash** – The so-called “Liberation Day” tariff policy drove one of the most violent stock market selloffs since early 2020. Are businesses and consumers prepared for what’s next?
- **Manufacturing reshoring adds friction** – Firms are continuing to move production out of China, potentially positive long-term, but disruptive in the short run.
- **What does it all mean for investors?** – A cautious stance remains prudent. With rising volatility, economic resilience, and global realignment all in play, diversification and discipline are essential.

 

Don’t miss the next *Markets & Economic Update* on **Tuesday, June 3, 2025**. [*Register today.*](https://www.hancockwhitney.com/en-us/june-2025-economic-update-webinar-rsvp)

 

### **Disciplined investing is more important now than ever.**

Our Asset Management team at Hancock Whitney is ready to help you align your portfolio to weather uncertainty and pursue long-term goals. *Contact your Private Banker today.*

 

* *

 

[View full post](https://www.hancockwhitney.com/insights/markets-economic-update-for-may-2025)

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