US Supreme Court Strikes a Chord on Tariffs
Finance Minister Scott Bessent believes the Supreme Court could side with the Biden administration on whether the recent tariffs hold up legally. He even tossed in a nostalgic reference to the Smoot‑Hawley Tariff Act of 1930—remember that one? Turns out it wasn’t a golden ticket.
“Did it work?
Anyone? It didn’t,” Bessent laughed. “The U.S. slipped deeper into the Great Depression.” That’s the comedic marketing slogan for a policy that made things worse for everyone.
Markets on Edge After Holiday
Yesterday, the stock tickers were closed for Labour Day, so today’s reaction was a litmus test: would the court ruling cripple Trump’s tariffs?
US futures dipped after those Friday losses, with the S&P 500 hovering near the 20‑day support line. In Europe, the DAX slid 1 % and the FTSE 100 was down 0.6 %—classic “in the mood for a controller’s dropout” day.
Trump’s Tariffs and the Global Game
Trump’s tariffs aren’t just numbers; they’re power moves reshaping global trade. When the Treasury pushes a policy, the Fed remains independent—though Bessent said the Fed had its own slip‑ups.
Meanwhile, UK bond markets are jittery. Gilt yields spiked after the prime minister shuffled the deck—nothing like a well‑played poker hand! The 30‑yr yield hit 5.7 %, a peak unseen in 27 years. That’s a red flag for the Labour government’s credibility.
Eurozone Up to the Rescues
Even across the Channel, Eurozone yields crept higher. Berlin’s 30‑yr hit its first peak since 2011, while Paris’s paper is ballooning. The spread between UK 30‑yr gilt yields and their European peers widened to a record—like a banker’s “moron premium.”
Gold, Silver, and the Great Monetary Inflation
Gold hit a fresh record above $3,500 a week ago; silver closed just shy of the $40/oz mark, a 14‑year high. The metals are riding the wave of rate‑cut expectations, inflation risks, and geopolitical jitters—especially the new craze of tariff wars.
With the dollar wobbling and the USDJPY bouncing off a 50‑day moving average, sterling is a fierce contender. It breached the August high before retreating. In contrast, the Euro slipped below 1.17.
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