Key Point: “[S]igns are starting to emerge across global financial markets that the weight of Donald Trump’s multi-pronged policy agenda is becoming a bit too much to bear. … [T]he US economy is starting to look iffy … the narrative has shifted from wondering when the Trump administration will boost the economic outlook to worrying it’s starting to damage the economy.” 

Bloomberg: There Are Signs Trump’s Policy Onslaught Is Starting to Hurt Markets

By Simon Kennedy and Alexander Nicholson

• [S]igns are starting to emerge across global financial markets that the weight of Donald Trump’s multi-pronged policy agenda is becoming a bit too much to bear.

• Behind the latest pickup in investor pessimism was Trump’s declaration he will go ahead with tariffs on Canada and Mexico as well as ordering curbs on Chinese investment. Also not helping the mood is the deepening split with the US and its allies over Ukraine.

• DOGE delivering $100 billion of cuts would be enough to push down the consumer price index by 0.2 percentage point. A more-aggressive $600 billion in cuts would equate to 0.8 point.

• Meantime, the US economy is starting to look iffy. … An index from Citigroup shows data is undershooting forecasts by the most since September. A University of Michigan report last week showed consumers’ long-term inflation expectations rising to the highest level in three decades, pushing overall sentiment down for another month.

• Mark Cudmore of Bloomberg’s Markets Live reports conversations with clients suggesting the narrative has shifted from wondering when the Trump administration will boost the economic outlook to worrying it’s starting to damage the economy.