High Inflation and New Tariffs Will Make the Fed's Job Tougher
1. Fresh tariffs and high inflation complicate the Fed's interest rate decisions. 2. Ongoing uncertainty may lead to volatility in S&P 500 performance.
FAQ
Why Bearish?
High inflation and tariffs could slow economic growth, impacting corporate profits, as seen in 2018.
How important is it?
Tariffs and inflation are key drivers of economic conditions, directly affecting investor sentiment.
Why Short Term?
Immediate market reactions to interest rate changes could create short-term fluctuations.