Rising tariffs could delay U.S. monetary policy normalization, keeping markets on edge.
đ¨ Experts Warn U.S. Trade Policies Could Affect Interest Rates đ¨
BMO Capital Markets strategists Ian Lyngen and Vail Hartman suggest that shifts in U.S. interest rates could occur swiftly as President Trump fine-tunes the countryâs trade policies. All eyes are on Federal Reserve Chair Jerome Powellâs upcoming testimony, which will shed light on how current tariffs might influence the Fed's response.
đ Key Insight: A further increase in tariffs could push back the normalization of U.S. monetary policy until later this year, keeping the markets on edge.
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