Trump asks Liberian president where he learnt English, despite it being Liberia's official language
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Yahoo
44 minutes ago
- Yahoo
Tariffs will hit harder in the coming months, with traders growing weary of the trade drama, Morgan Stanley's CIO says
Tariff pain will be felt more acutely in the coming months, Mike Wilson says. The Morgan Stanley CIO predicts three consequences from tariffs that could show up this quarter. Stocks could take a hit as investors wait for more concrete trade deals to materialize, Wilson said. Morgan Stanley's chief investment officer says investors are growing weary of the trade drama, warning that tariffs' negative impacts could start showing up for companies and in markets soon. Mike Wilson, the chief US equity strategist at Morgan Stanley, said he foresaw a slew of consequences stemming from President Donald Trump's tariffs, which could begin to impact markets as soon as the third quarter. Investors have stayed relatively calm so far this week, despite Donald Trump escalating his trade war. The president announced fresh tariffs on more than 20 countries this week, a separate 50% tariff on copper imports, and pushed out his original deadline to August 1. "I would say, 'Here we go again,'" Wilson said, speaking to Bloomberg on Friday about the latest tariff announcements. Here's what Wilson sees ahead. Investors are familiar with Trump's tariff negotiating playbook after seeing the president whipsaw on his trade policy during Liberation Day, Wilson said. "I mean, this is President Trump's style. He goes hard, and then he, you know, he doesn't back off completely, but it's a back-and-forth," Wilson said. But traders hungry for more concrete trade deals could soon grow tired of the drama, Wilson said. Trump — whose team once pushed the idea of 90 trade deals in 90 days — hasn't nailed down many deals with trading partners yet. "That's not going to work forever. Eventually we have to get to some deals," Wilson said. "There will become a point of exhaustion, is the way I like to think about it." Corporations have been shielded from the impact of tariffs so far, thanks to businesses relying on existing inventory to sell products to consumers. But that could change in the next few months, Wilson said. Smaller corporations could be especially affected in third quarter earnings season, he added, as they don't have as much pricing power to be able to pass along the cost of tariffs to consumers. "It hasn't begun to flow through to pricing or margins. But that we think begins to change in the third quarter, and that could be the catalyst, because stocks will react to a hit in margins," he added. Inflation could also begin to creep higher in the third quarter as tariffs finally start to work their way through the economy, Wilson speculated. Tariffs are widely thought to raise inflation, as companies can hike prices to offset the cost of import duties. That could also push out the market's expectations for interest rate cuts, as the Fed will look to keep rates elevated if inflation grows hotter. "Perhaps we get a spike in inflation, which, you know, then causes the Fed to sound more hawkish, and the market will care about that for sure," Wilson added. Read the original article on Business Insider
Yahoo
an hour ago
- Yahoo
Trump administration ramps up pressure on Powell as Fed holds rates steady
The Trump administration appears to be ramping up pressure on Jerome Powell to step down as Federal Reserve chair, with one federal agency issuing a statement voicing support for his departure. President Donald Trump, who nominated Powell as Fed chair in 2017, has frequently voiced dissatisfaction with the Fed's recent 'wait-and-see" approach to lowering interest rates, calling instead for rates to quickly drop from 4.25% to 4.5% to as low as 2.25%. In June, Trump called Powell a "stupid person" who has "done a poor job," adding that he's called the Fed chair "every name in the book" to try to get him to cut rates. He added, "Nothing works." Powell has also come under fire from Office of Management and Budget Director Russell Vought, who suggested Powell has 'grossly mismanaged the Fed' and misled Congress about an 'ostentatious' headquarters remodel. Powell has previously defended the project, calling some of the more extravagant descriptions 'misleading and inaccurate' during a June testimony before the Senate Banking Committee. The administration's pressure tactics appeared to continue July 11, when William Pulte, director of the Federal Housing Finance Agency and chairman of the Board of Fannie Mae and Freddie Mac, said in a statement Powell's resignation would be 'the right decision for America, and the economy will boom.' Buying a house: Fannie and Freddie may use new credit scores. Will it help you get a mortgage? Pulte referenced "reports" that Powell is 'considering resigning.' When asked for confirmation, the Fed declined to comment but directed USA TODAY to the many times Powell has said he intends to serve his term, set to end May 2026. Pulte's statement comes ahead of the central bank's July 29-30 meeting. The CME FedWatch, which tracks the likelihood of a rate cut based on futures prices, says there's a roughly 93% chance rates hold steady at 4.25% to 4.5% after the meeting. In June, the Fed held interest rates steady for its fourth straight meeting and kept its forecast for two cuts in 2025. Officials project they'll lower rates by a half percentage point this year to a range of 3.75% to 4%. While lower rates would juice the economy and help reduce federal debt interest payments, Powell has said the Fed wants to see how tariffs impact inflation before cutting rates. Trump in June said he's already looking for Powell's replacement, but he may have to wait if Powell doesn't step down voluntarily. A May Supreme Court ruling downplayed Trump's ability to fire Powell, noting that the Fed is "a uniquely structured, quasi-private entity" and unlike other independent agencies with members subject to terminations decided by the president. Contributing: Paul Davidson This article originally appeared on USA TODAY: Trump administration ramps up pressure on Fed chair Jerome Powell
Yahoo
an hour ago
- Yahoo
Canada hits pause on tariff hike as Trump extends trade deadline
-- Canada is pausing its planned escalation of retaliatory tariffs on U.S. steel and aluminum, Politico reports, after President Donald Trump extended a bilateral trade negotiation deadline to August 1, while simultaneously threatening new tariffs. The shift offers both nations a narrow window to avoid a broader trade rupture, though tensions remain high over economic and security issues. According to two Canadian government officials cited by Politico, Ottawa will no longer proceed with plans to double its tariffs on U.S. metals from 25% to 50% on July 21. The officials noted that Canada's current 25% countermeasures will remain in place during the extended talks for a new economic and security agreement. Trump's letter to Canadian Prime Minister Mark Carney outlined a new 35% tariff set to take effect August 1, separate from existing sectoral duties on vehicles and commodities. In it, Trump cited concerns over the alleged flow of fentanyl from Canada and what he described as 'unfair trading practices,' including tariffs of up to 400% on U.S. dairy exports. 'There will be no tariff if Canada, or companies within your country, decide to build or manufacture production within the United States,' Trump wrote. He added that he would 'consider an adjustment' to the planned tariffs if Canadian cooperation on drug policy improves. The White House's broader tariff directive this week applies new levies across multiple economies, including a 25% duty on both South Korea and Japan. These measures largely follow outlines from Trump's April announcement, dubbed 'liberation day,' though implementation has been delayed from July 9 to August 1. While the deadline extension has eased near-term pressure, officials on both sides have not ruled out escalation should a deal fail to materialize. Both Washington and Ottawa have threatened expanded duties on a wider range of goods if progress stalls. Related articles Canada hits pause on tariff hike as Trump extends trade deadline - Politico Trump's big beautiful bill to boost economy, but tariffs pack bigger punch: MS 'Beautiful Bill' to provide slight GDP boost through 2027, Morgan Stanley says Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
