Market "Mystery": Why is Trump doing this?
Well-known media personality Charles Gasparino raised questions on social media regarding Trump's trade tariff plan, suggesting that his swift actions could trigger a financial crisis. Mainstream media and Wall Street elites believe that Trump is under pressure and may not fully understand the consequences of his actions. Some netizens argue that Trump's chaotic strategy is intentional, aimed at forcing the Federal Reserve to cut interest rates or fire Powell. Currently, market volatility is increasing, and the risks of private equity assets are rising, indicating that Trump may be underestimating the risks in the financial markets
Well-known media personality Charles Gasparino raised a question on social media: Regarding Trump's trade tariff plan, the unresolved question is—why did he do it first? Why didn't he wait until economic growth reached 3% GDP; or until DOGE started to reduce the deficit? Why did he make such a disturbing move so quickly, which could potentially trigger a financial crisis if not carefully managed? The mainstream media's interpretation, along with the reasons given by Wall Street elites, is that Trump doesn't know what he's doing and is being pressured and deceived by those in the White House who think they can rebuild the manufacturing economy of the 1960s.
He believes that Trump is fully aware of the risks of a financial crisis and is doing it deliberately.
Other netizens think: chaos itself is a strategy. Trump sees Powell as an obstacle. In this framework, Powell either lowers interest rates or gets fired. The resulting market volatility is not collateral damage but rather accelerates the shift of capital from "virtual to real."
And now we have already seen the "U.S. Treasury storm" unfolding, with risks in private equity assets beginning to ignite.
Did Trump underestimate the risks of the financial market and overestimate the tolerance of U.S. Treasuries?
