The Market's Bet on Recession Is Getting Wagers
Bond traders are signaling an increasing risk that the US economy will stall as President Donald Trump's chaotic tariff rollouts and federal-workforce cuts threaten to further restrain the pace of growth. The shift in market sentiment is being driven by a growing consensus that the administration's policies will deliver another inflation shock and roil global supply chains. Investors are positioning for the Fed to start easing monetary policy to jumpstart growth, leading to a steepening yield curve.
- The escalating uncertainty surrounding Trump's trade policies highlights the need for policymakers to develop strategies that can mitigate the negative economic impacts of protectionism.
- How will the ongoing market volatility impact the ability of investors to achieve their long-term investment goals amidst growing recession fears?