• Equity Markities markets disappear nearly $ 1.5 trillion After President Trump has announced the developmental duties of import import, but administration is more interested in carrying borrowing costs to prevent a potential sovereign loan.

When President Donald Trump stopped a spreadsheet listing all the funniest tariffs he planned to smile at night, investors had something in mind going out.

S & P 500’s future contracts and the Nasdaq 100 fallen once markets learned that next week the US will hit the goods from China with 20% duty from Japan. Previous Harvard Economist Lawrence Summers judge Little $ 1.5 trillion in market value wiped over the course of about an hour.

Even to track futures for sale so far, administration officials dismissed Techer Ai stock prices of tech spies

“What I teach is that NASDAQ Neak in Derepeek Day,” Treasury Secretary Scott Bessensttold Bloomberg TV on Wednesday. “So that’sProblem in 7not a problem with swelling. “

Not true, says the Global Bank Investment Tree Investment, which tracks the feeling of harm to all Amazon UNTO Nike To a hike once-of-a-century raises the average effective imported duty at nearly 19 percentage points.

“To what President Donald Trump has a ‘liberation day’ for the American economy, April 2nd saw the width of the widest tariffs imposed in the United States for more than 100 years,”WRITESJacob Falkencrone on Thursday. “Markets around the world have changed in response.”

Debt repinancing tsunami

Bussent’s reaction may not be an attempt to avoid uncomfortable questions about the S & P 500 index to hit six months lows. There are other reasons why the White House may want to prevent voter attention from equity markets.

The former Hedge Fund administrator says he likes the New Test of Litmus For US economic health The Benchmark 10-year-old Treasury, out of this is a larger credit market – including car loans and car debts – wide price.

Its humility FRUITThe more cheaper can be borrowed money for Americans and Uncle Sam. That is vain as Bessensent inherited from his previous crisis that Wall Street veterans including Stanley Druncenmiller Blamed as a trugically myopic.

Biden Administration Decision to roll most of the debt with notes with short maturities like Treasury Bills today means having a Tsunami of debt The bussnts department should be refreshed this year without breaking the bank in the process.

Avoid a DOOM Loop debt loan market

The national debt interest payments have already been eclipsed with the annual expenditure of defense, hitting $ 1 trillion last year. An important increase from the current level can trap the US to a Doom Loop where it should still borrow a lot of money in higher rates to service it.

Trump and Bossent made them intended to prevent that vice by pushing the costs of borrowing high bonds, the federal reserve part is slightly controlled. While it may hurt stock in short term, The alternative becomes worse.

Billionaire Ray Dalio, builds the Macro Hed Condge Framewater, gives polices Three years of many To repair the US debt problem in the US before they risk seeing buyers to strike the next time they try to issue sovereign bundles.

So the Bessent plan appears to work. Caught by Trump’s punishment throughout the Tarko on the board, the market price of Finding the possible shrink.

With gold shopping, investors gather in US debt, pushing 10-year from 4.80% to 4.08% in less than three months.

This story originally shown Fortune.com

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