All posts tagged "Financial Markets"

In a perfect world, Congress and the courts would keep President Donald Trump's executive branch in line by balancing out his portion of the country's power base. Absent their effectiveness, the financial markets may be the last line of defense to moderate Trump's behavior, according to new analysis in The Bulwark.

Writer Matt Johnson posited that even as these vital institutions cave in to Trump's demands, "one important check remains: There’s nothing Trump can do to bend global financial markets to his will."

As an example, Johnson wrote that Trump's tariffs and the resulting stock market chaos were somewhat quelled last week when Trump was "bullied into submission" by the bond market. Trump announced that he was backing off his trade war because people were "getting yippee," but a massive sell-off in U.S. bonds led a CNN analyst to call it a rare economic "red flag" that even Trump couldn't ignore....

A US debt default would have dramatic economic repercussions and be "deeply damaging" to financial markets, Treasury Secretary Jack Lew warned lawmakers Thursday a week before a deadline to raise the nation's borrowing limit.

The shutdown of the US government will hit an an economy struggling to sustain its post-crisis rebound, but economists say the impact will only be substantial if it lasts weeks.