"What could derail some of that are the tariffs. That, to us, is the biggest known unknown for markets and investors," he said, noting that for now investors may be viewing the tariff announcements as "a negotiating tactic."
Trump has rolled out a new 10% levy on all Chinese imports and announced tariffs on global steel and aluminum imports. He said on Monday his proposed tariffs on Mexico and Canada were still set to start next week, and has said he plans to introduce 25% tariffs on autos, semiconductors and pharmaceutical imports.
More recently, worries about a slowdown have emerged. Data on Tuesday showed U.S. consumer confidence deteriorated at its sharpest pace in 3-1/2 years in February while 12-month inflation expectations jumped. Also, thousands of U.S. government workers have been fired in recent weeks as part of Trump's plan to reduce the federal workforce, although those losses have mostly not appeared yet in formal measures of the U.S. job market.