President Trump's newly imposed tariffs have led to immediate reactions, notably from China, which has retaliated with its own tariffs. While not guaranteeing inflation, these tariffs will raise prices short-term, complicating the Federal Reserve's ability to interpret economic data accurately. Fed Chairman Jerome Powell highlighted that the economic consequences are likely to be more serious than initially thought, leading to slower growth. Despite some consumer and labor market concerns, job additions and wage growth continue, although the unemployment rate has slightly increased. Recent market reactions reflect these uncertainties, impacting interest rates and consumer confidence.
The importance of tariff impacts surpasses our expectations as they are becoming larger and their economic effects, including higher inflation and slowed growth, become evident.
The recent jobs report indicates ongoing hiring while indicating a decrease in the Federal workforce and a slight rise in unemployment despite wage growth slowing down.
Collection
[
|
...
]