1110 ET - Tariffs are often seen as having a one-off impact on prices unlikely to fuel longer-term inflation, but Bannockburn's Marc Chandler isn't so sure. He is bracing for new tariffs to be imposed frequently, making them a lasting inflationary pressure. That, in turn, could make it harder for the Fed to cut interest rates. Although markets are still mostly pricing a Fed rate cut in June, odds of another trim later this year are declining, according to CME data. In the longer-run, economic growth could suffer, and that, he says, is why the yield curve is flattening after the tariffs announcement, with the long end falling. (paulo.trevisani@wssj.com; @ptrevisani)
(END) Dow Jones Newswires
February 03, 2025 11:10 ET (16:10 GMT)
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