- Markets are watching fiscal policy and have concerns.
- Markets are looking for more fiscal discipline.
- Fed won’t buy bonds in primary auctions.
- Hard data shows economy doing quite well, scant sign of tariff impact so far.
- If tariffs are closer to 10%, then economy is good shape for 2H.
- If tariffs settle down, Fed could be in position to cut in later part of the year.
- Much more optimistic now relative to last month on tariffs.
- Very hopeful the current path of administration is a good one.
- Firms are pausing but not cancelling plans.
- Continue to believe tariffs will be a one time price increase.
- Standard Fed playbook is to look through one time price impact.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
