• Fed’s updated projections show higher average inflation (3%) and slower growth (1.4%)
• On Wednesday, the Fed maintained steady rates but indicated plans for two cuts by the close of this year
• The Q3 window is particularly fragile due to the Fed re-evaluating rate cut expectations, or the fact that earnings season kicks off mid-July, just as key tariffs are set to expire

With the deadlines looming, tariffs are once again in the spotlight. US President Donald Trump’s initial 90-day pause on reciprocal tariffs is due to expire in early to mid-July, and if unresolved, tariffs of up to 50% could be reinstated on imports from the EU and other nations.

The Federal Reserve (Fed) has particularly flagged tariff-driven goods inflation as a growing concern, adjusting its inflation prediction upward and even scaling back expected rate cuts. On Wednesday, the Fed maintained steady rates but indicated plans for two cuts by the close of this year.

The Fed’s updated projections show higher average inflation (3%) and slower growth (1.4%), with tariffs and the current geopolitical situation being the main drivers of these projections. 

Then, there’s the European Union, …

The post Will Q3 Tariff Expirations Trigger a Global Risk-Off Shift? appeared first on Coin Edition.

• Fed’s updated projections show higher average inflation (3%) and slower growth (1.4%)
• On Wednesday, the Fed maintained steady rates but indicated plans for two cuts by the close of this year
• The Q3 window is particularly fragile due to the Fed re-evaluating rate cut expectations, or the fact that earnings season kicks off mid-July, just as key tariffs are set to expire

With the deadlines looming, tariffs are once again in the spotlight. US President Donald Trump’s initial 90-day pause on reciprocal tariffs is due to expire in early to mid-July, and if unresolved, tariffs of up to 50% could be reinstated on imports from the EU and other nations.

The Federal Reserve (Fed) has particularly flagged tariff-driven goods inflation as a growing concern, adjusting its inflation prediction upward and even scaling back expected rate cuts. On Wednesday, the Fed maintained steady rates but indicated plans for two cuts by the close of this year.

The Fed’s updated projections show higher average inflation (3%) and slower growth (1.4%), with tariffs and the current geopolitical situation being the main drivers of these projections. 

Then, there’s the European Union, …

The post Will Q3 Tariff Expirations Trigger a Global Risk-Off Shift? appeared first on Coin Edition.