100 Days In: Trump’s ‘Strategic Uncertainty’ on Tariffs Leaves Markets Guessing

Treasury Secretary Scott Bessent stated that the bond market is signaling the Federal Reserve should cut interest rates, pointing to two-year Treasury rates falling below the Fed’s benchmark rate. While traders don’t expect a rate cut at the May meeting, they anticipate cuts beginning in June. President Trump has repeatedly criticized Fed Chairman Jerome Powell and called for lower interest rates, despite recently claiming he has “no intention” of firing Powell.

McDonald’s missed Wall Street expectations in its first quarter earnings report, with revenue falling 3% compared to last year. The company saw a 3.6% drop in US same-store sales, as fewer customers visited its restaurants. According to CEO Chris Kempczinski, visits from low-income consumers fell “nearly double digits” and middle-income customer traffic declined almost as much, while high-income customer visits remained stable. The CEO pointed to the “cumulative impact of inflation” and economic anxiety affecting lower and middle-income consumers. An analyst noted these results weren’t surprising given the ongoing weakness among McDonald’s core lower-income customer base.

Gold’s recent price consolidation follows an investment-driven rally sparked by concerns over President Trump’s trade policies. Though prices have dropped 6.1% from their April peak, they’re still up 30% since Trump’s election. Q1 2025 saw gold investment flows increase 170% year-over-year, with ETF demand reversing from net selling to strong buying. Meanwhile, traditional demand drivers weakened, with jewelry fabrication falling 19% and central bank purchases down 21%. The market now questions whether this rally will continue or has run its course, as some early signs show investment demand flattening. Gold’s future performance likely depends on further developments in trade tensions,