Ski Cut

The author argues that Trump's April 2 "Liberation Day" tariffs acted as a ski cut that triggered a market avalanche, and that this sequence shows policymakers will act to calm markets. The article says the tariff rates were worse than the worst-case estimates of mainstream economists and analysts, and the MOVE Index for bond market volatility rose to almost an all-time intraday high of 172. Within a week Trump paused implementation for every nation except China for 90 days, and the Fed's Susan Collins and Treasury Secretary Scott Bessent then signaled support. The author also expects Bitcoin to rally on future tariff escalation and calls the local bottom at $74,500.