The aggressive economic policies of President Donald Trump have been contained so far in his mandate, not by the congress, but by the markets, and his pivots in the face of withered volatility show that the actions and the obligations act as guardians of his program.
It’s not just Trump either. The market has decreased the political will of the President’s right to reshape the government. Elon Musk, despite his arrow political ambitions and his cost reduction crusade, could not endure the heat that the market brought, announcing this week that he would withdraw from the White House after months of pain for Tesla’s stock.
From his trade war to his plans for the Fed, here is how the markets had an impact on Trump’s agenda while its first 100 days end.
Trump’s “Liberation Day”
President Donald Trump announced new prices in a decree. / Alex Brandon
What happened: The April 2 unveiling of radical reciprocal prices was followed by the worst two -day section for the stock market since 2020.
The intense sale continued the following week, but it was the bond market that finally attracted the attention of the administration. On April 8, the yield of the treasury at 10 years old touched its highest level since January.
Trump pivot: A week after their unveiling, Trump resumed most of his rates from the Liberation Day, announcing a 90 -day break on reciprocal tasks while leaving a universal price of 10% on most of the countries in place.
Trump himself has their heads for sale in bonds by speaking to journalists from the White House alley.
“The bond market is very delicate. I looked at it, but if you look at it now, it’s beautiful. The bond market right now is magnificent,” said Trump. “But I saw last night when people became a little uncomfortable.”
Market reaction: The day Trump has interrupted the trade war, the S&P 500 has had its best day since 2008, soaring 9.5%. The Nasdaq jumped up to 12% and the DOW added almost 3,000 points.
Trump attacks the fed chair
President Donald Trump with the president of the Fed, Jerome Powell, in 2017. SAUL LOEB / AFP / GETTY images
What happened: Despite the appointment in 2018, Trump clearly indicated that he was not satisfied with the performance of the president of the Federal Reserve Jerome Powell.
Related stories
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
This assessment has evolved in recent weeks when the president has criticized the head of the central bank so as not to reduce interest rates. Last Friday, the economic advisor of the White House, Kevin Hassett, said that the administration explored means to dismiss Powell before the end of his mandate in 2026, and in a position on Monday, Trump described him as “major loser”.
The shares were in the lead as the investors feared for the independence of the Fed. The S&P 500 lost 2.7%, the DOW lost almost 1,000 points and the NASDAQ dropped by 2.6%. The obligations, on the other hand, continued to sell, with agitated faith in higher American driving yields.
Trump pivot: Trump said after the sale of the day that he had no intention of dismissing Powell as president of the Fed.
“This is the ideal time to reduce interest rates. If it doesn’t, is it the end? No, that is not the case. But it would be a good timing.”
Market reaction: After returning to its comments on Monday, the S&P 500 climbed more than 2% on Tuesday, bond yields are redirected and the dollar stabilized after a long sequence of defeats for us, the safe exchanges.
The American-Chinese Trade War
Trump said the Fed should have reduced rates “a long time ago” in an article on Truth Social. Anna Moneymaker / Getty Images
What happened: While Trump has paid his trade war for most countries, he increased the rate of tariff on China.
The president increased prices on imports from the second world economy to 145%, and threatened to continue to go higher if the country has retaliated. China has not been discouraged, bringing its own rate rate to 125%.
Combined with attacks against Fed, investor perspectives for the United States have dropped and intense sale has been exacerbated while the economic growth of spiral fears.
Trump pivot: China on prices, Trump said on Monday that the 145% rate he proposed on American imports of the nation was “very high and that it will not be so high”, adding that the prices “fall considerably”.
Trump added Trump on Tuesday that he would be “very kind” to China in commercial negotiations.
Elon Musk and Doge
What happened: Musk’s time with the government’s ministry of efficiency was marked by a steep sale in Tesla’s stock.
Investors were worried for months that Musk’s policy caused incalculable brand damage and moved away from its most loyal customers.
Since the peak in mid-December, the stock had dropped by 44% at the start of this week.
Musk pivot: Monday, the CEO of Tesla announced that it would move away from the Ministry of Effectiveness of the Government from May, responding to a long -standing concern of investors that Musk was not spending enough time managing his car business.
Market reaction: Tesla’s shares, which dropped up to 53% of their top of all time in December, joined this week to the news this week. Actions jumped 5% on Wednesday while investors digested the news, with the departure of Musk from the White House which overshadows a report of dark winnings.
Trump responds to the markets
“Without a doubt,” said Peter Berezin, the world’s world and chief strategist of BCA Research, said when the market had been a railing for Trump. “If the actions decrease too much, the obligation gives an increase, which is carried away that Trump.
According to Michael Brown, a main research strategist at Pepperstone, the president probably reacts to a trio of economic data: the prices of tumultuous equities, the sale in bonds and the drop in the US dollar.
“All this simply indicates that investors lose a lot of confidence in the United States and in the Trump administration. And I think it really ended up forcing his hands to resume part of the rhetoric, especially around the Fed,” said Brown.
