The stock market is ignoring the truth about how Trump’s policies impact the dollar and global economic growth

Outside the Box

Trump’s tariffs stunned Main Street. Now they could starve Wall Street.

Last Updated: May 22, 2025 at 8:54 p.m. ET
First Published: May 22, 2025 at 7:35 a.m. ET

Stock and bond markets are sitting on a knife’s edge of doubt over the Trump administration’s tariffs and the impact of Congress’ budget bill on the federal deficit and the U.S. economy.

Bond-rating agency Moody’s last week downgraded America’s credit worthiness. Careful analysis suggests that America’s loss of its last triple-A credit rating will add a bit to the risk premium on U.S. Treasury debt. But this isn’t the financial market’s biggest problem.