Trump's Presidential Inauguration: Will the Dollar and U.S. Bonds Experience a Turnaround?
Donald Trump was officially inaugurated as the President of the United States on January 20. Several significant economic policies he proposed are expected to have a considerable impact, such as declaring a national emergency on the U.S.-Mexico border and canceling the Green New Deal. The postponement of tariff implementations has contributed to the dollar's decline and falling yields on U.S. long-term bonds. If Trump's stance on tariffs softens, there could be a potential reversal for the dollar and U.S. bonds.
With significant inflation pressure, Trump may avoid exacerbating the situation temporarily, but the imposition of tariffs on Canada and Mexico remains a possibility. It is also crucial to observe future trade negotiations and their impact on both the dollar and U.S. bonds.
