Analyst Signals Impact of Monetary Tightening on American Economic Outlook
As reported by ChainCatcher and quoted by Jin10, SignatureFD analyst Tony Welch suggests that the recent decline in US Treasury yields, observed after the Federal Reserve meeting, may reflect growing concerns among investors about the adverse effects of monetary tightening on the trajectory of the economy.
Welch points to the current economic slowdown, arguing that maintaining a more restrictive monetary policy for an extended period will inevitably exert negative pressure on growth. Additionally, he highlights the influence of Trump's tariffs on the Fed's reasoning, noting the explicit mention of trade in the FOMC statement from the beginning. Finally, Welch observes the repeated use of the word "uncertainty" by Powell during the press conference, underscoring the doubts that permeate the economic outlook.