Just like with the tariffs last month, we about to find out what level of bond yields and the S&P 500 are necessary for Trump and Congress to course-correct on what is completely unsustainable fiscal policy.. Buckle up!
..Trump 2.0 came into 2025 making the markets believed in 'exceptionalism' through what is communicated as a reset through executive order actions.
But all we got was:
1. DOGE public sector layoffs, the amount saved barely worth a mention
2. Dysfunctional tariffs and trade disorder/dislocation
3. Alienation of allies and sowing the seeds of distrust in America
4. Moody's credit downgrade
5. US Treasury subscription shunned by international players
6. Bond market turmoil and rising long term yields
7. A Fed that turned towards keeping rates on hold, awaiting to understand inflation implications of tariffs
8. From a promise to address Biden's debt and deficits to widening it further via its Beautiful Bill
9. A falling greenback that is almost bid-less
Nice work! In just 3 months!
and a US stock market that is hypnotised by Trump tweets into full-on complacency and disconnect to the new realities of the worsening economy.
