Alarming drops on the stock market and recession warnings did not win President Trump after announcing high prices on dozens of countries. But the tremors on the American state bond market made it start.
This revealed Mr. Trump’s pain, showing what it was necessary to force him to modify a signature economic policy. He had watched the bond markets, he told journalists, and thought that investors had become “a little zero”.
These episodes suggest that what the White House is able to achieve during the second term of Mr. Trump can largely depend on the reaction of the bond market, by setting up a war tug against commercial policy, tax reductions and more.
The obligations of the American government are essentially treasure loans, considered as one of the safest bets in finance. These obligations include a huge market of several billion dollars in which all individual investors in pension funds, multinational companies and even foreign governments are investing.
This is why net movements can be so bordered by stomachs, including for the President of the United States. Trump Trump’s tariff statements by Trump’s pricing declared investors on board, even after the market recently stabilized.
The sale of bonds was also accompanied by a drop in the value of the dollar. This has fueled the fears that investors have embittered the United States, for a long time the undisputed focal point of the world economy.
