Fears of the end of the U.S. exceptionalism trade have triggered a rare, simultaneous selloff across stocks, Treasuries and the dollar in recent weeks, as concerns over tariffs and the politicization of the Federal Reserve under President Donald Trump continue to mount.
Since Trump’s self-declared “Liberation Day” on April 2, when he unveiled sweeping “reciprocal tariffs” on U.S. trading partners, the market reaction has been swift and broadly negative. U.S. government bonds, traditionally a refuge during equity volatility, have failed to provide a safe haven.
The Trump-Powell Tension Behind The Market Unwind
Market fragility was further exposed by Trump’s open attacks on Fed Chair Jerome Powell.
First, he wrote last week on Truth Social, “Jerome Powell is always too late and wrong. His termination cannot come fast enough.”
Then, during a press conference with Italy’s Giorgia Meloni, he pushed the issue further:…
