- Companies want some consistency
- Leaders have to put pencils down because of so much change
- A 50% EU tariff is an order of magnitude different from current situation
- Tariff rates that high would be scary for the suppl;y chain
- There is anxiety among firms that continued tariff announcements would disrupt the supply chain and lead to rising price environment.
- In the short run the Fed needs to wait for the dust to clear, the bar for action is higher until that happens.
- If tariffs have a stagflationary impact then that is the central banks worse situation
- My fear is the data comes out with a lag, so something may have already happened. Upcoming reports may show a more serious impact from actions already taken.
- The market determines the long end of yields. We should take into consideration the impact from that impact on the economy.
- Our job is to look at anything that affects prices and employment
- Interest rates are still within historical ranges, if there is a crisis over US fiscal stability they would be moving higher.
This article was written by Greg Michalowski at www.forexlive.com.
