In May, investors shifted their focus from worst-case scenario trade-war fears towards a more benign economic outlook supported by expansionary fiscal policy amid rapidly changing trade policy headlines. Market pricing discounted stronger economic growth, rising fiscal deficit funding needs, and tighter…

Recent weeks have seen significant volatility in financial markets, largely driven by shifts in US trade policy and investors’ assessment of the likely implications for the economy and monetary policy. The US April 2nd “Liberation Day” tariff announcements prompted a recalibration…