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Jack McKeown's avatar

Spot on, Michael. The markets and CEOs everywhere hate uncertainty and their natural response is to pull back on investing. They accumulate cash instead. As a former CEO, I knew that my primary job was to manage risk while trying to drive growth. Risk corrodes the results obtainable by sensible executive decision making. DJT is an uncertainty engine. And uncertainty compounds like a carnival roller coaster with failing brakes. It is a hard-wired human instinct. In an age of near instantaneous communication, this fear washes down to consumers rapidly. That best describes our current situation. Layer on top of this the pending effects of mass government layoffs and downsizing by federal contractors. Given the months-long lag in data reporting, this won't show up until May/June. Then look out. This is why Powell is holding back on further rate cuts, because he needs to warehouse those cuts to deal with the mounting risk. Inevitably, this will prompt DJT/Doge to go after the Fed to artificially lubricate the economy with aggressive rate cuts. They will attempt to bend the Fed to their will. And how do you suppose the financial markets will react to that!

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Leah Anderson's avatar

And Trump, Musk, and Vought are placating people by telling them it's a "little disruption" and temporary hardship but then everybody is going to be wealthier than ever before. The lies and the media lying to prop up the lies is all Trump's gullible base is hearing. They don't listen to the Fed, understand what tariffs even are, or pay attention to actual policy. If they did, we wouldn't be here.

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