‘Be Cool,’ Says Trump as Fear of Recession Mounts Amid Market Turmoil

As markets reel under growing economic pressure, President Donald Trump took to Truth Social on Wednesday with a message of reassurance: "BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!" In a follow-up post, he added, "THIS IS A GREAT TIME TO BUY!!! DJT."

Trump’s optimistic remarks come at a time of deepening financial anxiety, with falling stock prices, plunging oil, and surging fears of a recession all shaking investor confidence.

Market volatility intensifies

The U.S. economy is feeling the heat from ongoing protectionist tariffs and escalating trade tensions. Bond yields have spiked dramatically — a signal that investors are dumping U.S. Treasury bonds, driving down their prices and pushing up the government’s borrowing costs.

On Wednesday, the yield on the 10-year Treasury rose briefly above 4.5%, while the 30-year hit more than 5%. These jumps are dramatic by bond market standards — especially given that just days earlier, yields were significantly lower.

Treasury Secretary Scott Bessent described the current bond market movement as “deleveraging convulsions.”

Experts warn of crisis

Columbia economic historian Adam Tooze warned that the current situation mirrors dynamics from March 2020, when a Treasury market freeze pushed the global financial system to the brink. “This is the script for a truly existential financial crisis,” he wrote.

The turmoil has been made worse by the unwinding of a trading strategy known as the “basis trade.” Hedge funds that normally buy Treasury bonds to hedge derivatives exposure are now either selling off their holdings or avoiding new purchases altogether. This has further reduced demand for government bonds.

Echoes of past crises

The sharp moves in the bond market have reminded some analysts of the 2022 UK bond crisis that ended then-Prime Minister Liz Truss's tenure. Much like the U.S. today, the UK at the time faced a sharp market backlash driven by concern over government finances.

According to a report from Axios, analysts at ING summed up the market mood, writing: “The 'sell America' trade is currently dominating the market — and is applying equally to both bonds and stocks.”

The key takeaway?

While President Trump seeks to project calm and optimism, financial experts and investors are bracing for further turbulence. With recession fears rising and U.S. debt under pressure, the coming weeks could prove critical for the American economy.