This is CBS Eye on the World. Here's John Batchelor.

Welcome back, Liz Peek, from a moment of reflection to a moment of action because the markets demand attention. The markets since Liz and I last spoke

have moved steadily upwards. And then here comes the tariff talk again. So we turn to what does the

tariff talk mean to the markets. Now, in April, you will all recall, Liberation Day meant so long market highs, and there was a reversal of fortune.

But at some point, later in April and certainly in May and June, the markets recovered to new highs with the White House watching, with our trading partners watching.

All of this leads us to say, are the markets

believing now that Mr. Trump will or will not enforce a new deadline, which is midnight,

August 1st, 2025? Liz, a very good evening to you. I want to get to Jerome Powell, but I'm enjoying

the markets of watching

Donald Trump the second time around. When he sang Liberation Day April 2nd, I believe it was.

The markets believed him. Do they believe him now, Liz? Can we tell? Good evening to you.

Good evening. I think they showed some confidence yesterday that indeed Trump was again serious about rectifying our trade imbalances via tariff. And I think that was the sort of shocking realization after the rollout on Liberation Day. Everybody, first of all, was dumbfounded that tariff rates were set so high.

Secondly, they were completely confused as to how the Trump administration got to those numbers.

And I think, John, one of the things that happened in the aftermath then was everybody kind of went back to the drawing board and said, wait a minute, this really doesn't make any sense. We're apportioning tariffs based on where our trade

or how much our trade imbalances. So you had this peculiar thing where countries, there was one

entity, country, whatever, that literally has nothing but penguins on it that had a huge

tariff because of some strange tax deal where there was trans-shipping going through that

locale or something. In short, it really didn't make much sense. After the market sold off

in the wake of that Liberation Day announcement,

cooler heads, aka Scott Besson, Treasury Secretary, I think convinced the president not only

that the tariff regimen he was talking about was going to really hurt the economy, obviously was hurting

stock prices, it was also probably going to undermine his ability to get through a big

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