Trump-inspired turmoil may be positive for some less well-known markets – including Singapore

[SINGAPORE] When US President Donald Trump was elected in November last year, inflation had subsided, the Fed was cutting rates, and growth was proving to be remarkably robust.

This column opined then that it was probably only a matter of time before steady wage growth would alleviate the pain of sharply higher prices that US consumers had suffered since 2022. Even if Trump simply did nothing, he might soon have been in a position to claim that his re-election had brought about an economy that works for ordinary people.

This was never going to happen, of course. Trump had railed against globalisation, free trade, illegal immigrants and profligate government spending during his campaign. Since getting back into office, his administration has fired government employees, started trade wars with friends and foes alike, and upended longstanding global alliances.

Within a month of his inauguration, US stocks began pulling back from all-time highs amid growing fears of stagflation or even an outright recession.

The nervousness seemed to intensify last week, with investors shrugging off further signs that US inflation is easing and focusing instead on indications that consumer confidence is sagging in the face of Trump’s chaotic policymaking.