#TrumpMarketInsight

Since President Donald Trump's return to office in January 2025, financial markets have experienced significant shifts influenced by his administration's policies. In his first week, Trump signed more executive orders than the last ten presidents combined, signaling an aggressive policy agenda.

The administration's focus on protectionist trade measures, such as imposing tariffs on imports from China, Canada, and Mexico, has raised concerns about potential inflationary pressures. Economists predict that these policies may exacerbate inflation rather than alleviate it, with forecasts suggesting a rise to 2.6% in 2025.

In the energy sector, Trump's declaration of an "energy emergency" aims to boost fossil fuel production. While this has led to increased oil and gas output and falling gasoline prices, critics argue that it hinders progress toward renewable energy and combating climate change.

The administration's "America First" policy emphasizes self-reliance and assertiveness in global trade. This approach includes high tariffs to protect domestic industries, drawing inspiration from historical protectionist strategies. However, concerns are mounting about potential consequences, such as rising inflation and higher borrowing costs.

Financial markets have responded with both optimism and caution. Major stock indices have seen gains, with the S&P 500 increasing by 1.7% and reaching a record close. Investors anticipate benefits from deregulation and tax reforms, particularly in the financial sector.

However, the bond market reflects concerns about prolonged price pressures due to the administration's immigration and trade policies. Major asset managers predict that inflation will remain above the Federal Reserve's 2% target in 2025, complicating efforts to control inflation.