Financial markets are FORWARD looking, pricing in the risks of what is to come. Bonds and stocks have been a bit at odds over the past year, but both are now signaling a coming recession. In other words, for worst is yet to come.
“Cutting the fat” is the exact opposite thing you do when fiscal stimulus is needed. This should have been done when things were going well. But Trump was more concerned with throwing gas on an economy that was already hot.