Tariff Tantrums and Fed Flip-Flops: A Market Rollercoaster 🎢
The U.S. is playing hardball with China, throwing around massive tariff threats but then softening the blow with exemptions and talks. Why? Bond markets are freaking out—10Y UST yields hit 4.6%, 30Y at 5%—and high yields could tank Trump’s stock market dreams. The Fed’s feeling the heat, hinting at rate cuts (3.5 expected in 2025) and calling inflation “transitory” (yeah, right). Gold’s shining as a safe haven, while Bitcoin’s stuck in the mud, failing to catch a bid. Oh, and U.S. debt concerns are creeping up with wider swap spreads and credit default swaps.
This feels like a high-stakes poker game where everyone’s bluffing. The U.S. tariff drama is more theater than policy—rattle markets, then negotiate. The Fed’s “transitory” inflation talk is a red flag; they’ve been wrong before, and markets might get burned betting on cuts. Gold’s rally makes sense with geopolitics heating up, but Bitcoin’s lack of love shows it’s not the safe-haven hero some hoped. Keep an eye on those bond yields—they’re the real market movers right now.
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