Why Bonds, Not a Recession, May Have Driven Trump's Tariff Pause -- And How It Could Affect You

US stocks tumbled following President Donald Trump's announcement last week of widespread retaliatory tariffs and a 10% universal import tax, triggering fears of rising consumer prices and a potential recession. But it was surging bond yields, not plunging stocks, that seemed to get the White House's attention. Shortly after pausing the "reciprocal tariffs" that went into effect on Wednesday, Trump said he'd been watching the bond market closely and he acknowledged that "people were getting a little queasy." A wave of selling began hitting US Treasury bonds Tuesday night as the prospect of sweeping tariffs fueled concerns about the reliability of US-backed assets. Normally, during economic uncertainty or recession fears, investors tend to buy US Treasury bonds due to their stability and predictable returns. These are seen as safe-haven assets because the US government is considered very likely to repay its debt. However, that stability has come into question amid Trump's turbulent tr ... Read full article.