About ten days ago, an increasingly confident Scott Bescent began telling Wall Street executives that he was trying to eliminate the big dark cloud that hovered over the US market and economy.
The market wants to move. President Trump was able to move forward with his broader plan to isolate the injustice of global trade due to his high tariffs and frequent theft of US intellectual property.
He avoids existential threats to the young president in an economic meltdown that causes tariffs, which could lead to ramping inflation and recession.
But it was last week and there are no deals yet that appear to be imminent by Monday’s press time — so the market resumed trading after a free fall weekend. It didn’t help that Trump’s increased uncertainty.
Inventory fell by more than 2%, depending on the index. The Dow crashed 1,200 points at one point, and the bond was spiked and other ominous signs were obtained. Our flights to gold and bitcoin, not our finances or dollars, are the largest cryptocurrency in the world with no inherent value other than what part of his basement considers it to be worth.
The trade war was not supposed to fall like this.
“Wedbush veteran technology analyst Dan Ives said:
So far, it has prevented the announcement of layoffs amid uncertainty. Because, as one institutional investor said, he cut down favorable trade transactions by saying, “Trump might pull this off.”
But what if he didn’t?
This is an increasingly important concern for large investors and corporate CEOs as they confirm costs will rise due to the potential for tariffs and economic slowdowns.
Think about it: Japan was thought to be approaching trading, but nothing happened after that. One top investor said he was told by Japanese trade officials that the White House was continuing to mess with the exact terms. The White House believes Japan is slow to remove protectionist trade barriers for US goods, along with Bescent’s list of other countries.
Wall Street believes messaging is still a problem. While more trade-centric Bescent appears to be leading the effort, Trump’s volatile and Hawkish Commerce secretary Howard Rutnick remains at a trade conference alongside US trade Jamie Songlia. Ambassador. All three were controversial with the White House Minister of Japan, External Trade and Industry Ryosei Kazawa last week.
Peter Navarro, the Uber Hawkish Trump Trade Guru, is always in the mix.
Most worrying is that markets and businesses generally love certainty, and Trump is not a straight arrow when it comes to negotiations. His skill is to disrupt the balance on the other side as he has been successful with banking during his long career in real estate and business.
It worked at that time. The problem is that he is negotiating with the state on behalf of his creditor, so it now works.
“In the end, it doesn’t matter what Beast is thinking, because Beast is working for Trump,” one banker who deals with the White House told me.
