Insights

After nonstop negative policy actions or threats to the economy, President Trump eased back on two major initiatives last week, providing relief to beleaguered bond and stock markets.

Investors and businesses came into this year with misplaced optimism that President Trump would promote pro-growth policies and fuel higher risk asset prices. In a matter of months, Trump has instead effectively sidelined the U.S. exceptionalism theme, triggered a significant stock market correction, severely impaired what was a strong U.S. economy, and is approaching the brink of a “crisis of confidence.”