As U.S.-China trade tensions escalate, economic anxiety blankets every corner of Wall Street, with U.S. stocks, the dollar, and oil sliding. The effect of Trump’s investment calls lasted only a day. Gold bull Peter Schiff warns that U.S. assets are being sold off, urging investors to buckle up. While yesterday’s CPI data came in below expectations, concerns linger that aggressive trade policies could fuel persistent inflation, prompting unease among several Fed officials. Investors hoping for a Federal Reserve bailout may be left disappointed.

Trump’s Rally Call Fades Quickly, Peter Schiff: Buckle Up

Just one day after the biggest stock-buying frenzy in years, assets tied to economic cycles fell again. Despite Trump’s claim that he was on the verge of securing a tariff agreement with a certain country, the market’s euphoria turned to unease. Fears are mounting that an escalating trade war between the world’s two largest economies could inflict lasting damage on global growth, especially as the White House announced U.S. tariffs on China have risen to 145%. The S&P 500 dropped 3.46%. The dollar posted its worst day since 2022, and a robust sale of 30-year U.S. Treasuries failed to spark a bond market rebound.

Gold bull Peter Schiff continues to warn investors to brace themselves:

Even Bloomberg analyst Eric Balchunas shared evidence showing that the S&P 500’s volatility is now as high as Bitcoin’s!

Lingering Tariff Concerns, Fed Bailout Unlikely

Although Thursday’s CPI data showed U.S. inflation cooling broadly in March, those figures were calculated before widespread tariffs, which could intensify price pressures. As Trump’s high tariffs ripple through the economy, declining prices for services like hotel stays and airfare may signal that some consumers are cutting back on discretionary spending.

Meanwhile, a growing number of Fed officials are expressing concern that aggressive trade policies could lead to sustained inflation. Chicago Fed President Austan Goolsbee noted that tariffs act like a stagflationary shock, posing a challenge for the Fed as there’s no standard playbook for addressing such an impact. Recent comments from multiple officials suggest the Fed is in no rush to further lower borrowing costs. Instead, they prefer to observe how government policy changes will affect the economy before adjusting interest rates.

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