US Jobs Data Calms Market Fears, but Jitters on Policy Uncertainty Dominate
A solid U.S. jobs report assuaged some swirling concerns about a rapid growth slowdown, but with policy uncertainty surging and tariff headlines keeping the outlook for risk assets murky, Wall Street sees little to cheer. Feb job growth shy of estimates, but some investors braced for worse. Tariff, federal workforce cuts cloud Wall St outlook; Powell says economy "continues to be in a good place".
- The recent surge in policy uncertainty could lead to a self-reinforcing cycle where market volatility fuels further calls for policymakers to take action, potentially derailing the economic recovery.
- What would happen if the Fed fails to deliver on its promise of interest rate cuts, leaving markets to fend off the growing risks emanating from trade tensions and fiscal austerity?