Trump's Tariffs Potentially Push Out Timing of Fed Rate Cuts -- Market Talk

Dow Jones14:49

0649 GMT - The risk of higher inflation following the U.S. tariffs announced heightens the chances that the Federal Reserve's FOMC will remain on pause for a longer period, Pepperstone's Michael Brown says in a note. "This heightens the chances that the FOMC will stay on pause for longer, pushing back the timing of cuts to the fed funds rate towards the end of 1H at the soonest," the senior research strategist says. In any case, imposing tariffs on the U.S.' two closest neighbors isn't a particularly sound macroeconomic or fiscal policy stance, Brown adds. U.S. President Trump's administration moved to levy tariffs on goods from Mexico and Canada plus an extra 10% tariffs on imports from China. (emese.bartha@wsj.com)

 

(END) Dow Jones Newswires

February 03, 2025 01:49 ET (06:49 GMT)

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