Recent White House Climbdowns and Market Impacts
Recent U.S.-China trade deal is one of many recent White House climbdowns, including Elon Musk's departure, Trump's decision not to seek Powell's removal, and a more conciliatory stance towards Ukraine. Risky assets and volatility risk premium are expected to have lasting power in the coming months.
Key Points
- U.S.-China trade deal
- Elon Musk's departure
- Trump's decision on Powell
- Zelensky-Trump meeting
- Impact on risky assets and volatility risk premium
Pros
- More stable environment for risky assets
- Improved relations with China and Ukraine
Cons
- Uncertainty surrounding trade deals and policy changes