Trump is sowing confusion in the markets

THERE are many reasons to feel confused by current American policy. US President Donald Trump keeps issuing “final” tariff threats – then backing down.

The White House wants to create industrial jobs – but is gutting the Inflation Reduction Act that was doing just that, mostly in red states. Scott Bessent, Treasury secretary, wants dollar dominance, but has presided over a 10 per cent fall in its value. And so on.

However, if you want to feel more baffled, look at markets. This month, the one-year swaps market is pricing modest rate cuts from the US Federal Reserve, which normally implies lower growth and inflation.