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Lack Of 'Trump Put' Could Drive Market Lower 'Very Quickly,' Says Expert, As Fed Chair Jerome Powell Stands Ground On Rate Cuts

The Donald Trump administration and the Federal Reserve are signaling a lack of relief amid escalating trade tensions and policy uncertainty. Experts warn that this could further drive the markets lower.

What Happened: According to Craig Shapiro from 3-Circle Investments by The Bear Traps Report, the absence of this perceived “Trump put” or “Fed put” could trigger a swift and significant market downturn.

“The market has been searching for a Trump put or a Fed put and was informed this past week that both puts are struck lower,” Shapiro noted in his analysis. He believes the Fed will only intervene when financial stability is threatened, specifically if the U.S. Treasury market begins to dysfunction.

Speaking on Friday, Federal Reserve Chair Jerome Powell emphasized that the Fed’s priority remains achieving its dual mandate of maximum employment and stable prices.

While acknowledging that the economy is “still in a good place,” he stated that the Fed is closely monitoring the economic impact of new policies, particularly trade.

“It is ...