The American economy swings: stagnation waving on the horizon when the bond market interacts with Donald Trump’s policies

The bond market highlights the alarm bells for the economic slowdown in the potential United States, as president Donald TrumpThe turbulent tariff policies and the reduction of the federal workforce aim to hinder growth.

What happenedInvestors poured money in short cabinet bonds, which led to a significant return in the return for two years since mid -February.

This step is in response to the expectation that the Federal Reserve will start reducing interest rates early in May to ward off more economic deterioration, Reports Bloomberg.

“Just a few weeks ago, we were asking questions about whether we believed that the American economy- and now suddenly the word r is raised over and over again,” Gennadi GoldbergThe head of the American interest rate strategy at TD Securities The Outlet said.

The rapid shift from optimism about growth to despair is flagrantly contrary to the elasticity of the American economy in recent years. Initial investors thought that Trump’s presidency would inflate this trend, which predicts growing and inflation faster, prompting the return up late last year.

Also read: The market instability is waving in Trump’s second state, Paul Tudor Jones warns: “There is no room for errors.”

However, since mid -February, the treasury revenues have decreased as the policies of the new administration have planted a significant uncertainty about economic expectations.

The main factor was Trump’s escalating trade war, which is expected to lead to the shock of other inflation and the disruption of global supply chains.

“The recession risk is higher due to the Trump policy sequence – definitions first, tax cuts later,” he said later. Try ChenWallet Manager in Brandiin International Investment Management.

Why do it matterThe reaction of the bond market is a clear indication of the increasing concerns about the health of the American economy. The shift in investor morale, from optimism to despair, confirms the uncertainty and potential risks associated with the current management policies.

The escalating trade war and the possibility of other inflation shock may increase the stability of global supply chains and hinder economic growth.

Moreover, the potential step of the federal reserve to reduce interest rates early, a measure that usually takes to prevent economic decline, highlights the severity of the situation.

The economic effects of these developments may be far -reaching, which affects not only the United States but also the global economy.

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