US President Donald Trump’s tariffs shook the world and the stock market. However, he decided to give the world a 90-day break from them (with the exception of China), and he encouraged people to invest in the stock market, claiming it to be “a great time to buy.”
An expert weighed in on the reason behind these moves and what they mean.
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The stock market’s highs and lows
After the announcement of the “Liberation Day” tariffs on April 2, stock markets plummeted globally, losing trillions of dollars.
However, after Trump encouraged people to invest in the stock market after the 90-day pause announcement, the stock market started to recover.
The Democrats are far from satisfied
Democrats deemed the recent moves by the Trump administration to be an attempt to manipulate the market.
They believe that the administration is trying to lower stock prices, buy the dip, and then undo its actions leading to an increase in prices after buying them cheap.
The White House denied the allegations
The White House has denied the Democrats’ claims and insisted that what happened with the tariffs “was his strategy all along.” The White House’s defense was met with plenty of criticism nevertheless.
Fox News’s business correspondent broke what is happening down
Fox News‘s business correspondent Charlie Gasparino broke down what is potentially happening, saying:
“The reason why is because of the bond market and what happened last night. Scott Bessent knows this better than anybody when you have yields on 10-year [bonds] rising to five percent, stuff starts shutting down and you have the lending market screwed up.”
How the bond market is involved
Governments are always in need of money, and they issue bonds to help them with that matter. They get your money upfront, pay you interest which is known as “yields,” and then give you the original amount you gave them back.
“It’s the bond market and the sort of lending markets that’s the plumbing of the economy. And those markets were imploding last night, and that’s why we have a 90-day freeze. Let’s see if those markets improve,” Gasparino explained.
Gasparino thinks Trump is one step ahead
Gasparino admitted to Trump’s wits before explaining how the bond market is involved, saying:
“I want to tell you right now that Donald Trump outsmarted the world. Trust me. I’m an American, I support my president. But that’s not really what happened here, from what I understand. Make no mistake about it, you cannot divorce this decision right here from what happened last night.”
