Forget Tariffs! This Is the Single Greatest Threat to the Trump Bull Market, and It's Expected to Become a Reality on May 15.
View original at nasdaq.com“A considerable reduction in lending rates would make it easier to service America's more than $39 trillion in national debt.”
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Kevin Warsh's FOMC voting record over his five years shows clear hawkish tendencies—strongly favoring higher interest rates during the financial crisis to suppress inflation.
60% confidenceThe Motley Fool Stock Advisor analyst team identified the 10 best stocks for investors to buy now, and the S&P 500 Index was not among them. Stock Advisor's total average return is 983% vs. 200% for the S&P 500.
60% confidenceInterest rates should be aggressively lowered to 1% or below to ease servicing of America's $39+ trillion national debt.
60% confidenceThe goal of tariffs is to encourage businesses to manufacture goods destined for U.S. markets domestically and to make U.S. products more price-competitive with imported goods.
60% confidenceKevin Warsh is the wrong choice if Trump wants someone easy on inflation.
60% confidenceMarket players interpret Warsh's nomination as hawkish because of his views on the need for a radical balance sheet reduction. The $31 trillion American economy demands liquidity and financing needs larger than a radically reduced Fed balance sheet could provide.
60% confidenceSelling the Fed's long-term Treasuries and mortgage-backed securities would weigh on bond prices and likely send yields higher, increasing borrowing costs—a worst-case scenario for a pricey stock market counting on lower rates to spur AI data center growth and innovation.
60% confidenceThe FOMC will rely on economic data, not political opinions, to drive its monetary policy decisions.
60% confidenceThe biggest threat to the Trump bull market is not tariffs—it is Kevin Warsh and a new-era FOMC.
60% confidenceU.S. trailing 12-month inflation will increase by an additional 28 basis points to 3.58% in April 2026.
60% confidenceTrump's tariffs can be problematic for businesses and the stock market. Businesses impacted by Trump's 2018–2019 China tariffs experienced declines in employment, labor productivity, sales, and profits from 2019 to 2021. Input tariffs raised production costs and made U.S. goods less price-competitive with imports.
60% confidence
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