Investors weigh the impact of US President Donald Trump’s tariff policies, the latest batch of proposals could add a whopping 25% tax on automobile, semiconductor, and pharmaceutical imports.
Former Federal Reserve Bank of Boston president Eric Rosengren joins Market Domination with Julie Hyman and Seana Smith to discuss the economic impact of Trump’s tariff policy.
Tariffs affect "both consumers and businesses," Rosengren says, explaining that "in a world where you don’t know whether they’re going to be tariffs of a magnitude of 25% or higher, it starts affecting your decisions about what to buy now, what to buy later." He says this sentiment applies to both consumers and companies making investments.
Federal Reserve Bank of Atlanta President Raphael Bostic similarly described American consumers as feeling "pretty much tapped out" at the notion of future price hikes fueled by inflation and tariffs.
"Uncertainty, actually, is quite destabilizing both to business decisions, but also consumer decisions … I think that that uncertainty is likely to be a damper on growth that we would otherwise be seeing," Rosengren tells Yahoo Finance.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here: https://finance.yahoo.com/videos/series/market-domination/
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