Not out of the woods

While U.S.-China tariff rhetoric has softened for now, deeper concerns persist. The U.S. dollar has strengthened in recent weeks, and interest rates are trending higher—despite growing doubts about fiscal sustainability and the erosion of U.S. economic credibility.

Are bond markets looking past the tariff noise, pricing in the risk of new tax cuts and the looming refinancing needs of U.S. sovereign debt?

Despite the headlines, the Trump administration remains on uncertain economic footing.