Markets Bet Against Trump, Expect Fed Rescue

Despite President Trump's recent tariff hikes on Mexico and Europe, global markets remain near all-time highs, driven by the assumption that the Fed will cut interest rates if economic conditions worsen. However, experts warn that if tariffs lead to inflation, the Fed may prioritize controlling inflation over easing, potentially causing significant market volatility. Investors are betting on a rescue by the Fed, but this may be a risky assumption.