The Fed put and the Trump put may both be gone ...Middle East

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1) The Trump Put

In his first two months in office, Trump 2.0 has been different. Members of his cabinet are talking about a detox and short-term pain. He still references the stock market but is also doing and threatening things that are problematic. The 10% drop in the S&P 500 since February speaks for itself.

2) The Fed put

Now it's less clear that ammunition is available. This week we saw the Fed's Musalem crack open the door to rate hikes, while Daly indicated she was losing confidence in her forecast for two cuts this year. Today's inflation numbers were slightly hotter than expected and there is a growing possibility that the Fed won't be able to cut at all -- even if the economy stumbles. The Fed put might be gone.

Now much of this is Trump's own doing with tariffs but it's illustrative of why stock markets are struggling and could fall further.

This article was written by Adam Button at www.forexlive.com.

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