Trump's policies raise global interest rate concerns and strengthen US dollar

Donald Trump's "America First" agenda is causing concerns about inflation, impacting global bond markets and driving up the US dollar. Investors are reacting to fears that his policies could lead to economic instability. The US yield curve has steepened as long-term bond yields rise, reflecting increased risk perceptions among bond investors. Previously, there were expectations for multiple interest rate cuts, but now the market anticipates only one, with some analysts suggesting possible rate hikes. The International Monetary Fund warns that Trump's policies are raising long-term borrowing costs worldwide, particularly affecting countries tied to global supply chains. The US dollar has strengthened significantly, which could disrupt the global economy and impact emerging markets.