TechFlow news — On March 10, according to Jinshi News, sentiment in U.S. financial markets is undergoing a significant shift. Traders are increasingly setting aside expectations of economic stimulus from Trump, instead anticipating that the Federal Reserve will need to resume rate cuts to prevent an economic downturn. Since mid-February, yields on two-year U.S. Treasury notes have dropped sharply, with market pricing now indicating the Fed could restart easing as early as June.
Gennadiy Goldberg, Head of U.S. Rates Strategy at TD Securities, said: "Just weeks ago, we were being asked whether we thought the U.S. economy would reaccelerate. Now, the word 'recession' is suddenly coming up repeatedly. The market has shifted from optimism about growth to outright despair."
Tracy Chen, Portfolio Manager at Brandywine Global Investment Management, noted: "The sequencing of Trump’s policies—imposing tariffs first and cutting taxes later—has definitely increased the risk of recession." Market perception of Trump’s policies has also shifted, she added: "Before this trade war, markets believed tariffs would cause inflation. Now, people believe tariffs will lead to recession. That’s a major shift."
