đ¨ Global Economies Are Starting to Press on Trumpâs Pressure Points
If youâve been watching closely, one thing is clear: Trump prioritizes two outcomes above all elseâ
⤠A rising stock market
⤠Falling bond yields
Thatâs exactly why he has repeatedly criticized Jerome Powell for keeping interest rates high and sticking to a hawkish policy stance. By now, global players understand a simple reality: if you want to rattle Trump, you rattle the markets.
And the most effective way to do that? Push bond yields higher.
When bond yields climb, equity markets tend to panic. And when the stock market panics, political pressure follows. Recent events show this strategy is already unfolding:
â Denmarkâs pension fund has completely exited its U.S. Treasury bill holdings
â Swedenâs largest pension fund has dumped nearly $8 billion in T-bills
â Deutsche Bank has warned that escalating U.S.âEU tensions could trigger large-scale European asset salesâdespite the EU holding over $2 trillion in U.S. Treasuries
The result? U.S. bond yields have surged to a five-month high. The impact was immediate, with U.S. equities wiping out more than $1.3 trillion in market value in a short span.
If this pressure continues, a trade deal emerging within the next 5â7 days wouldnât be surprising. Such a move could signal a market bottomâfollowed by a sharp and powerful recovery.
Markets donât move on politics aloneâbut politics always reacts to markets.
#GlobalMarkets #BondYields #UsStocksMarket #TrumpEconomy #MarketVolatility
