Economic Resilience - The global economy has shown considerable resilience despite heightened policy and political uncertainty, attributed to supportive financial conditions, robust household and corporate balance sheets, and lower energy prices [3][4] - Early fears of a trade war with rising tariffs and a halt to global shipping have not materialized, contributing to ongoing economic growth [3][4] Market Reactions - Global equity and bond markets have reacted positively, with stock prices surging and inflation fears remaining muted, contrasting with early predictions of recession and market plummeting [2][3] - The yield on the U.S. 10-year Treasury note has decreased from approximately 4.6% to around 4.1%, indicating that financial markets are currently overlooking potential risks associated with U.S. monetary policy [5][6] Federal Reserve Dynamics - Attempts by President Trump to influence the Federal Reserve, including efforts to oust the Fed chair and fire a governor, have so far been unsuccessful, allowing the Fed to maintain its independence [5][6] - The Federal Reserve has cut its benchmark rate by 25 basis points, reflecting confidence in meeting its inflation target despite political pressures [6]