Donald Trump’s Economic Agenda Under Market Pressure After Supreme Court Ruling

A recent Supreme Court decision that struck down key elements of President Donald Trump’s tariff strategy has heightened concerns about the administration’s fiscal outlook. The ruling contributed to a Treasury sell‑off that pushed the 10‑year yield to 4.67% in mid‑May before it eased amid Iran cease‑fire talks, prompting investors to price a political‑risk premium tied to trade policy, war risk and deficits.

Economist Eswar Prasad warned that the Treasury’s attempts to intervene in foreign currency markets – including buying Japanese yen and previously supporting the Argentine peso and discussing the United Arab Emirates – reflect a “desperate attempt” to stave off market warnings. He linked these moves to unsustainably high U.S. government debt and a lack of fiscal discipline, suggesting they could deepen the nation’s debt burden while undermining tariff effectiveness.