Inflation traders brace for short-term shock from tariffs, immigration policies - MarketWatch

1. Inflation trends indicate a potential short-term shock with CPI above 3%. 2. Proposed tariffs may sustain high inflation, impacting economic outlook and consumer prices. 3. Treasury yields remain stable despite a significant drop in DJIA, affecting investor sentiment. 4. Long-term inflation expectations are down, suggesting possible recession ahead. 5. Current market sentiment is mixed, with uncertainty around tariff negotiations and labor shortages.