The commercial war, which could climb in the coming months due to the tariffs that Donald Trump imposed to China, Mexico and Canada, Add new chapters every day, while The market remains by recalibrating expectations continuously and the uncertainty It is, for these hours, current currency. Perhaps the most complex point is to reassess If the Federal Reserve (Fed) will continue with the cuts in interest rates this year and how many will be.
While the president of the Richmond fed, Tom Barkinhe said that The Fed still leans towards new rate cuts this yearhe also said that “the uncertainty on the impact of Donald Trump’s government initiatives on tariffs, immigration and regulations It will have to be better understood “. Together with tariffs, there is “deregulation -where it will hit -immigration, energy policy, geopolitics. There is a lot of uncertainty in the air“Barkin said.
It should be noted that The US Central Bank decided in January to keep its rate policy on the waiting of more data on employment and inflation, and Result of Trump government policies, which can be difficult to anticipate.
According to the Fed Watch Tool of the CME, which takes up an IEB report, The market continues to consider the most likely scenario to a 25 basic points cut at the June 18 meeting, but let the FOMC again cut its monetary policy rate at the meeting on December 10.
“The news of the implementation of rates, neutralized what in principle could have been the most relevant news of recent days, which was the meeting of the FOMC of January 29 (First of the year). In the same, the FOMC validated the expectations of the market and left its monetary policy rate unaltered in the range of 4.25%-4.50%, marking a pause in the process of reduction of the monetary policy ratesince he had cut her in the last three meetings, “IEB recalled.
Tariffs: Mexico and Canada negotiate a truce
Thus, after a complex start to the week, Trump’s aggressive policies gave a little respite. After the US president announced on Saturday that he would implement 10% tariffs on all imports from China and 25% to those of their neighboring countries, On Tuesday he met with Claudia Sheinbaum, president of Mexico, and Justin Trudeau, Prime Minister of Canada, and gave both a 30 -day truce. But, on the other hand, The situation with China is not so simple.
The response of the Asian giant came with the decision to impose “tariffs on a variety of American products and announced an investigation to Google for alleged antitrust violations. Among the new measures, Beijing imposed a 15% tariff on exports of liquefied coal and natural gas in the United States, and taxed US exports and American agricultural equipment with 10%. In addition, the Chinese authorities included PVH Group in a blacklist, “they recalled from PPI.
For Outlierthe decision to negotiate from the White House, could be considered as “The Trump Trade War entered an impasse after 48/72 very intense initial hours for the marketsbut during which there was much more noise than nuts. “
In turn, Tuesday Trump held a meeting with Israeli Prime Minister Benjamín Netanyahu, to evaluate Israel’s situation and at a later press conference declared that “the US should take long -term control of Gaza.” This, they said from the same report, “would begin to show that the focus now runs to new issues, with Negotiation with China still pending, but with the White House, underlining Beijing that it is open to negotiate, and tariffs on Europe still without concrete definitions“
“Fed rate futures also moved on Tuesday and they put a little more optimistic. Now we are again at the limit to discount two rate cuts in 2025“They closed from Outlier.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
