Trump may adjust economic policies to support stock market stability, says economist

Wharton professor Jeremy Siegel suggests that Donald Trump may adjust his economic policies to maintain investor confidence in the stock market. Siegel describes Trump as the "most pro-stock market president" in U.S. history, indicating he may prioritize market stability. Following the election, bond market reactions indicated concerns over Trump's proposed policies, which could increase the federal deficit and inflation. The yield on the 10-year U.S. Treasury rose sharply, signaling investor skepticism about potential tax cuts and government debt. Siegel notes that while extending Trump's 2017 tax cuts may be feasible with a Republican Congress, other tax proposals could face challenges. He also believes Trump is unlikely to significantly influence the Federal Reserve, as market stability relies on the Fed's independence.