Donald Trump's inauguration has triggered a mix of optimism and fear in global markets, with many investors concerned about potentially extreme economic policies that could inflate prices.
According to economist Paul Krugman, the bond market appears to believe that Trump's promises will lead to increased tariffs and trade wars that may exacerbate inflationary pressures.
Experts are worried that Trump's hardline stances on tariffs and immigration may choke the US labor supply and substantially elevate inflation rates.
Market strategist Jamie Constable highlights that Trump's sensitivity to financial markets could lead him to soften his more extreme proposals if investor anxiety escalates.
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