Recession odds are rising as Trump’s tariffs sink bond yields, oil prices, and stocks. So, too, are the odds of multiple Federal Reserve interest-rate cuts.

President Donald Trump is ratcheting up pressure on the Federal Reserve to cut interest rates, accusing Fed Chair Jerome H. Powell of “playing politics” and of acting too slowly to respond to changes in the economy.

Traders and economists see increased chances of cuts ahead but Federal Reserve Chair Jerome Powell said central bankers will wait to see the effects of new tariffs.

The president wants to end so-called non-tariff barriers, including EU regulations that keep out U.S. poultry.

In a dramatic change of policy, Donald Trump has paused higher tariffs on goods entering the United States from every country except China. In a post on social media, the President said levies would be lowered to ten percent,

Hedge funds typically profit handsomely from the $1 trillion “basis trade,” but the Federal Reserve could be forced to step in as yields surge.

Confidence in the US economy is plummeting as investors dumped government debt amid growing concerns over the impact of Donald Trump's tariffs. On Wednesday, the yield - or interest rate - on US bonds spiked sharply to touch the highest level since February at 4.

President Trump imposed more tariffs on nearly 100 nations, hiking U.S. duties to the highest level since before World War II and sparking a race among many targeted nations to renegotiate terms of trade with the U.

The U.S. corporate bond market has shut again after opening for just one bond offering on Tuesday, as spreads in the week after President Donald Trump's Liberation Day tariffs have widened the most since 2023's regional banking crisis.