https://x.com/ETNOWlive/status/1922848313251963087
President Donald Trump’s decision to reassess his stance on firing Federal Reserve Chair Jerome Powell and scaling back tariffs on China has brought some stability to the volatile financial markets. Key advisors and CEOs, having warned the administration about potential economic chaos, are breathing a sigh of relief as Trump dialed down his aggressive rhetoric. Alarm bells had been ringing among Trump’s top advisors and major American CEOs concerning his tariffs, particularly on China, and the immediate threats to remove Powell from his position.
https://x.com/ETNOWlive/status/1922487599865725346
These warnings highlighted fears of financial turmoil and empty store shelves, an outcome CEOs like those from Walmart, Target, and Home Depot pointed out in a recent private meeting with Trump. The three major stock indexes responded positively. The Dow surged by 420 points (1.07%), the S&P 500 increased by 1.67%, and the Nasdaq Composite climbed 2.5%, although all closed below their peak levels of the day.
Treasury Secretary Scott Bessent played a significant role in calming the markets.
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He announced that the administration would seek to de-escalate the trade war with China, reassuring that rebalancing trade relations might take two to three years. Despite his cautious tone, this statement helped maintain the positive momentum in the stock market.
US markets briefly surged, with the Dow gaining nearly 1,200 points in the morning session before pulling back. However, Bessent’s note of caution about the lengthy rebalancing process tempered the early enthusiasm.
tariff rethink steadies stock markets
https://x.com/PeterSchiff/status/1922757872451989861
Treasury bonds experienced a roller-coaster day, rallying in the morning before yields rose again, reflecting ongoing investor uncertainty. Despite the temporary stock market boosters, considerable challenges remain. White House press secretary Karoline Leavitt reiterated that there would be no unilateral tariff reductions on China, emphasizing the need for a fair trade deal.
Trump’s moderated tone followed a pivotal meeting with key retail executives, who underscored the immediate adverse effects of his trade policies. The optimistic rally was partly driven by this private session, where CEOs vividly described supply chain disruptions and mounting economic pressures. The warnings from Trump’s economic team likely played a role in his reconsideration.
Despite Trump’s fluctuating rhetoric, advisors like Bessent consistently urged caution. Trump’s sudden pivot away from aggressive measures against Powell, whom he labeled a “major loser,” was thus seen as an embrace of a more measured approach. As Trump reassesses his policies amidst widespread retail and market concerns, the ongoing narrative underscores the delicate balance his administration must maintain.
With Powell’s job seemingly secure for now and a possible thawing of the trade war with China, market participants are watching closely, cautiously optimistic that financial stability may be on the horizon. The president’s actions, heavily influenced by his advisors and key industry leaders, highlight the fragile state of the American economy amid current trade tensions and monetary policy debates.
