Wall Street doubts Trump on policy ideas

Wall Street is now looking past President Trump's policy proposals meant to address the affordability crisis, from stimulus checks to 50-year-mortgages.

Why it matters: Market participants doubt whether the recent ideas will go anywhere and, if they do, whether they would actually address the problems of affordability.

What they're saying: "Well into a second administration, investors have developed a filter for the president," Joe Brusuelas, chief economist and principal at RSM US, tells Axios.

• Investors are familiar enough with Trump's approach to differentiate between "extreme statements" and "more substantial decisions," he adds.

State of play: The White House has made several policy proposals meant to address the affordability crisis.

• $2,000 stimulus checks paid for by revenue from tariffs.
• 50-year-mortgages meant to address rising home prices.
• Rollback of tariffs on dozens of items from beef to coffee.

Zoom in: The market didn't move meaningfully off any of these proposals.

• The bond market in particular would have been primed to react to the tariff checks, given revenue from the levies is meant to eat away at the deficit.
• But both the bond market the stock market are relatively sanguine, with the latter too focused on Nvidia and all things AI to care about Washington.

The other side: The White House declined to comment on the stock move yesterday.

Threat level: The proposals may not fix the problems they aim to address.

• Stimulus checks fueled inflation coming out of the pandemic, according to a study from the Federal Reserve.
• Longer-term mortgages can decrease monthly payments, but increase the overall cost of home ownership, according to Moody's.

• Food prices "weren't necessarily going up just because of tariffs," National Economic Council director Kevin Hassett said on ABC "This Week."

Between the lines: "The problem with the government trying to solve market problems is that it's always a supply issue, and the government is not great at solving supply issues," Norton of Empower tells Axios.

• "That's where the private market is much, much better," she adds.

Reality check: This was also a criticism from Wall Street during the Biden administration with regard to stimulus checks doled out amid the pandemic and increased government spending via the Inflation Reduction Act.

What to watch: How the market responds to Washington as the year ends. Investors seem too dazed by the AI bubble to consider much else right now.