Stocks drop after DOJ opens criminal probe into Fed chair Jerome Powell, and the initial reaction seems a bit…understated, to put it mildly. We’re talking about a criminal investigation into the very person who steers the Federal Reserve, the entity that’s supposed to be the bedrock of our economic stability, and yet the market’s response is less a plummet and more a gentle dip. Many comments I’m seeing point out that, at least initially, the market showed remarkable resilience, even recovering some losses. This raises questions, doesn’t it?
The prevailing sentiment seems to be that a significant market drop wasn’t the immediate outcome.… Continue reading
Following warnings from major retail CEOs about imminent price increases and empty shelves due to his trade policies, President Trump significantly softened his rhetoric. His threats to fire Federal Reserve Chair Jerome Powell were also dialed back after market reactions caused significant stock drops. Consequently, Trump announced a reduction in planned tariffs and expressed optimism for a trade deal with China. These policy shifts, along with Treasury Secretary Steven Mnuchin’s influence, led to a significant market rally. The president’s altered stance followed warnings from his economic advisors about the potential for further economic turmoil.
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Trump’s tariff threats, initially presented as unwavering, ultimately crumbled under the pressure of a sharply reacting bond market. The sheer panic that gripped investors revealed a crucial weakness in his strategy: the overestimation of his own power and a profound underestimation of global interconnectedness. His bravado, initially fueling pronouncements of unyielding resolve, quickly evaporated in the face of market turmoil.
The swift reversal from fierce pronouncements against any concessions to a sudden pause on tariffs illustrated a significant shift. This abrupt change, occurring within days, not only exposed a lack of foresight but also underscored the inherent risks of his economic brinkmanship.… Continue reading