UBS On-Air: Market Moves UBS On-Air: Paul Donovan Daily Audio 'The art of the retreat'
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Apr 23, 2025 Investor concerns are on the rise as the US President showcases retreat tactics regarding the Federal Reserve. His statement about not planning to fire Fed Chair Powell raises questions on its independence. Additionally, optimism blooms from promises of amicable trade negotiations with China, hinting at potential relief for US consumers. This shifting landscape underscores the delicate balance between market confidence and economic uncertainties.
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Trump's Policy Retreats Impact Markets
- President Trump showed signs of retreating from aggressive policy stances, easing some investor concerns.
- The reversal on Federal Reserve firing and trade talks with China suggest a softening but maintain uncertainty.
Erratic Policies Shake Market Confidence
- The erratic cycle of threaten and retreat increases economic uncertainties.
- Market confidence in Federal Reserve independence has weakened compared to three months ago.
Tariffs Weigh on US Economy
- High tariffs impose significant tax burdens on US consumers and businesses in the near term.
- Uncertainty from tariffs may negatively affect economic activities later this year.