Donald Trump previously suggested that "trade wars are good and easy to win," but current market sentiment reflects concerns that they could lead to a recession. Under Trump 2.0, traders are skeptical that the administration will pivot on policies that negatively impact the market. Treasury Secretary Scott Bessent noted a shift in focus from Wall Street to small businesses and consumers, suggesting a rebalancing of the economy. This comes amidst growing expectations for multiple Fed rate cuts as pessimism about growth rises, fueled by tariffs and persistent inflation.
The market believes the opposite of Trump's trade war stance: that a trade war is bad and could plunge the U.S. into an avoidable recession.
Treasury Secretary Scott Bessent highlighted a shift from Wall Street's focus to small business and consumer priorities, indicating a rebalancing of the economy.
Bessent emphasized that the decline in long-term interest rates stems from pessimism about future growth and expectations for continued low rates to stimulate employment.
George Vessey noted a new reality of higher domestic prices and weaker growth due to Trump's tariffs, leading to a weakening dollar contrary to expectations.
Collection
[
|
...
]