A warning that the Federal Reserve could be forced hike rates, not cut

<p>By now you'll be familiar with the news that:</p><ul><li><a href="https://www.forexlive.com/news/trump-floated-possibility-of-60-tariffs-on-chinese-goods-report-20240128/" target="_blank" rel="follow" data-article-link="true">Trump floated possibility of 60% tariffs on Chinese goods – report</a></li></ul><p>While 60% seems unlikely (although it'll be populist attractive in sound bites) there is a real, substantial danger according to Capital economics:</p><ul><li>"Donald Trump’s plans for a universal 10% tariff on all imports and tariffs of up to 60% on imports from China specifically would subtract up to 1.5% from US GDP and trigger a rebound in inflation that could force the Fed to raise interest rates again."</li></ul><p>I'd rate it as low probability, but something to think about if Trump wins in November. </p><p>Not at the end point trailhead yet?</p>

This article was written by Eamonn Sheridan at www.forexlive.com.

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