Macro In the first 100 days of his second term, Donald Trump’s presidency has had profound and destabilizing effects on the U.S. economy. His aggressive use of tariffs triggered significant market volatility, rattling both equity and bond markets. Investors, typically drawn to U.S. Treasuries during periods of risk, instead shifted assets toward safer foreign currencies like the yen and Swiss franc, signaling a loss of confidence. As a result, the…

Macro It was a relatively light economic calendar this week. U.S. retail sales rose 1.4% in March, the most substantial gain since January 2023, driven largely by a surge in auto purchases likely accelerated by impending tariffs. However, control group sales disappointed, and the boost is seen as temporary. Other data showed mixed signals: housing starts dropped 11.4% to an eight-month low, and industrial production declined 0.3%, weighed down by…

Macro The U.S. has launched an aggressive tariff regime that dwarfs the historical Smoot-Hawley tariffs in both scope and economic impact. What makes this shift even more consequential is that today’s U.S. economy is three times more integrated into global trade than it was in 1930. These new tariffs, applied unevenly across countries and products, have created a chaotic business environment in which companies are unable to make informed investment…

Macro This week marked a pivotal moment for global markets. President Trump’s “Liberation Day” tariffs sent shockwaves through the economy, while the latest jobs data revealed both strength and underlying fragility. With inflation concerns mounting and recession risks rising, markets now face a high-stakes reset. Here’s what you need to know. U.S. employers added 228,000 jobs last month, beating all forecasts despite downward revisions to previous months. The jobless rate…

Macro The February Core PCE rose 0.37% month-over-month, pushing the annualized rate to 2.79%. The increase was driven by price pressures in goods and non-housing services, even as shelter inflation continued to moderate. Earlier in March, a softer CPI report raised hopes that inflation might ease without aggressive Fed tightening. However, those hopes were dented by the PCE release, which failed to confirm a consistent disinflation trend. Further compounding concerns,…

Macro The Federal Reserve has kept interest rates steady against a backdrop of an increasingly uncertain economic outlook. While this decision was expected, it also provided relief to markets that the Fed did not rush to conclusions. Markets responded positively to the Fed’s stance, reaffirming the view that tariff-related inflation is likely transitory—reassuring that further aggressive tightening is not imminent. The market has shifted from inflation concerns to rising recession…