Trump Tweets, Reeves Computes, January 2025 Is All Noise and Numbers!

As we move into the shortest month of the year, January 2025 could certainly be described as noisy in the financial and political world, especially with the influence of Donald Trump in the U.S. and Rachel Reeves in the U.K. Both figures are making bold economic moves that are sparking debate, market reactions and political pushback.

The “Noise” of Trump’s Return

With Trump back in the White House, his aggressive economic policies, such as corporate tax cuts, deregulation and a push for lower interest rates, have dominated headlines. His “America First” trade stance is causing uncertainty in global markets, as investors weigh the potential impact on supply chains and international relations. His vocal criticism of the Federal Reserve and calls for immediate rate cuts have added further volatility to the financial landscape.

Reeves’ Bold Economic Reforms in the U.K.

Meanwhile, Rachel Reeves, as the U.K.’s first female Chancellor of the Exchequer, has been making waves with ambitious economic growth policies. Her push for infrastructure expansion and pension fund reform has generated significant discussion. While investors welcome her pro-growth stance, environmental concerns and debates over planning laws have added to the political noise in Westminster.

Market and Media Reaction

Financial markets have been reacting to the uncertainty surrounding Trump’s trade policies and Reeves’ economic restructuring. The noise isn’t just political, it’s also financial, as central banks, businesses, and investors try to anticipate the consequences of these policy shifts.

Conclusion

Between Trump’s boisterous return to power and Reeves’ rapid policy rollout, this month has not been a Dry January with its noisy high-stakes decision-making, market turbulence and intense political discourse.

As long-term investors, what is most important is an attempt to filter out the near-term ‘noise’ and concentrate on the fundamentals. Whilst volatility can be unpleasant, these are also the times to step back and consider what has really changed. Whilst those forced to sell may need to make knee jerk reactions in the near-term, those with multi-year investment horizons should remain patient.