Famous economist Nouriel Roubini, who foresees the 2008 global financial crisis, said that the Federal Reserve (FED) should not be expected from US President Donald Trump’s tariffs for foreign trade in global markets. According to Roubini, the current imbalance of the markets stems from direct political explanations and sudden policy changes. Therefore, the Fed’s field of movement is limited and the decision process depends directly on the signals from Washington. In particular, the difference between Trump and FED President Jerome Powell makes the intervention process even more complex.
The reflection of tariffs on the economy was harsh
Last week, the extensive import taxes announced by President Trump led to uneasiness in the markets, especially with trade policies targeting China. High -rate taxes have affected not only the US but also the global supply chain and triggered harsh decreases in financial markets. The Nasdaq 100 index, which focuses on technology shares, attracted attention with a 12 %loss, while the crypto currency market was affected by these developments. Crypto currency with the highest market value lost by 10 %and saw $ 75,000 for a short time.
The sudden rise in the long -term returns of US Treasury bonds created a panic atmosphere among investors. This re -raised the possibility of USD liquidity crisis, especially. This possible contraction in liquidity conditions has significant risks for both real economy and financial markets.
The Fed decision can be attached to political contention
In the face of this harsh mobility in economic indicators, market players are waiting for an early and bold step from the Fed, as in the 2020 period. However, according to Nouriel Roubini, this expectation does not reflect the truth. Roubini stated that the expectations that the FED will make an interest rate reduction of at least five quarters will be optimistic, said Powell’s decisions will be directly associated with Trump’s rhetoric.
“There is a clear disagreement between Trump and Powell. Powell is not as hasty as Trump about the intervention.
On the other hand, some market experts argue that the main indicators of the US economy are still intact. According to this view, the risk of decline is limited to now. However, the lack of control of inflation and the ongoing pressure in the long -term bond market may narrow the Fed’s maneuvering area.
The impact of uncertainty and misleading news is increasing
In addition to the volatility of tariffs in the markets, the misleading news spread through social media triggers short -term price movements. Such content, which leads to temporary rises, can adversely affect the decision -making processes of investors. The direction of the markets with such information prevents more extensive analyzes.
It is seen that investor psychology became fragile and the effect of economic data is perceived even more exaggerated during the periods when uncertainty prevails. This can have complex consequences not only in financial markets, but also in the policies of central banks.
The main element that Roubini draws attention is that tariffs are not only a commercial tool, but also as a geopolitical mechanism of action. This approach both damage global stability and creates a new imbalance in the economic governance of the United States.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
