President Donald Trump’s economic agenda has sparked significant market turmoil and uncertainty during his second term in office. The stock market, which was initially optimistic about Trump’s policies, has since tumbled, and confidence in the administration’s ability to manage the economy has crumbled.
Investors are now facing a stark reality: there is no “Trump Put” – a policy change that would reverse course to bring stocks back up if markets dropped below a certain level. Instead, investors believe Trump’s policies, including high tariffs and deregulation, may be weakening the economy.
“The market is giving a thumbs down to Trump’s policies,” said Ed Yardeni, president of Yardeni Research. “It’s not obvious at all to investors that all of this will be followed by a golden age.”
Federal Reserve officials have also dimmed their 2025 growth forecast for the economy, warning of higher inflation and a weaker jobs market.
Meanwhile, Trump officials are framing the market stress as short-term pain versus long-term gains. Treasury Secretary Scott Bessent described stock market corrections as “healthy” and “normal,” but this view is not shared by all investors.
As markets slide, investors are increasingly uncertain about the impact of Trump’s policies on the economy and the stock market. The administration’s willingness to push forward with high tariffs and deregulation has sparked concerns about a potential economic downturn.
The situation is akin to a toddler who only screams louder after failing to get his way during a temper tantrum. Investors fear that Trump may not be listening to their warnings, and this could exacerbate the market response.
With “Liberation Day” – the day Trump plans to implement reciprocal tariffs on US trading partners – looming, investors are holding their breath for any sign of policy change or relief from the economic uncertainty.
The uncertainty surrounding Trump’s policies is fueling volatility in the markets, and investors are struggling to figure out when Trump officials will finally show signs of concern.
Source: https://edition.cnn.com/2025/03/24/business/stocks-trump/index.html