A combination of fears, including projections that Trump’s agenda bill will expand deficits, moved investors to sell.
Fears of a global government borrowing glut — likely to be compounded by the GOP’s spending and tax cut bill — helped fuel an unusually weak auction for U.S. government bonds that sent markets into a tailspin Wednesday.
The broad S&P 500 fell 1.6%, while the Dow Jones Industrial Average declined more than 800 points, or 2%. The tech-heavy Nasdaq was off 1.4%.
Investors are increasingly worried that central banks around the world, including the U.S. Federal Reserve, will have to hold interest rates higher for longer. That scenario could help keep a lid on inflation, which can be fueled by rising levels of government spending.
That scenario could help keep a lid on inflation, which can be fueled by rising levels of government spending.
Because that is what is causing inflation. The US is entering the hypernormalisation phase.
Trump admin: *destroys everything, is utterly incompetent*
Markets: ¯\_(ツ)_/¯
What I want to know is how many bonds we bought ourselves with our magic money printer in order to backstop rates at “only a little” above 5%
lol, some of that ol’ maga.
Conversely, gold, the “anti-dollar” is pumping. It’s the safest place to put your money these days.
I’m sure Trump himself repeatedly questioning the validity of the debt and threatening to default on it had nothing to do with it.
