Unhedged Three surprises that might spook the markets
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Jul 8, 2025 The hosts explore why the stock market remains buoyant despite looming economic troubles. They dissect the implications of a new budget that could swell U.S. debt by trillions. Discussions about tariff tensions and their impact on bond yields reveal potential market volatility. The conversation also critiques unconventional networking and regressive tax policies, blending humor with serious insights. Tune in to discover what might just spook the markets!
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US Big Budget Bill Explained
- The US recently passed a large budget bill that enshrines Trump's tax cuts into law and raises the debt limit.
- This bill adds $3 to $4 trillion in debt over ten years, increasing fiscal deficits significantly.
Markets Ignore Debt Spike
- Despite the large US debt increase, the bond market shows only a moderate reaction, with yields slightly higher but within normal trading ranges.
- Markets are not panicking about deficits currently, and risk appetite for equities remains relatively strong.
New Tariffs Have Limited Impact
- New tariffs on Japan and South Korea are unlikely to significantly impact inflation or the economy given the small increase in effective tariff rates.
- Much of the tariff burden on autos and pharmaceuticals is already in place, so incremental tariffs add little.