Markets Say 'Tell Us What We Don't Know' On Trump Tax Proposal
- Stocks linger near record highs, dollar posts modest bounce
- Plan’s lukewarm political prospects overlooked as havens sink
Cohn Unveils 'One of Biggest Tax Cuts' in U.S. History
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The efficient market theory rang true when it came to the reaction of stocks, bonds and currencies after the Trump administration unveiled its initial proposal to cut corporate and individual tax rates.
After President Donald Trump’s April 22 tweet that he’d deliver “big tax reform” helped trigger a rally in U.S. stocks the past two days, the S&P 500 lingered close to a record high as his top economic adviser Gary Cohn and Treasury Secretary Steven Mnuchin listed the goals of the overhaul. The dollar rallied into the announcement before easing gains. Treasury bonds remained positive even as the outline raised the risk of bigger deficits.