- Advanced warning on tariffs have allowed firms to manage process.
- It will take time before full clarity arrives on trade policy.
- Tariff impacts will play out over time.
- Risk tariff -related inflation will affect expectations, it’s an open question.
- Much of tariffs pricing hasn’t worked its self into economy yet.
- Needs more information to know what’s next for monetary policy.
- Uncertainty over outlook is more than just trade policy driven.
- People don’t like one monetary policy is volatile.
- Fed has luxury to be patient, job market is solid.
- Expects one rate cut this year and three next year
- There is more tariff related price increases to come
- Data suggests firms will pass on tariff related price increases
- Firms trying to avoid steady price rises when adjusting for tariffs
This article was written by Greg Michalowski at www.forexlive.com.