Jed Graham of Investor’s Business Daily reports that Federal Reserve Chairman Jerome Powell may reconsider his stance on the impact of Trump tariffs as Treasury yields surge, despite the economic fallout. Graham writes:
Federal Reserve Chairman Jerome Powell said just last Friday that there’s no rush for policymakers to cushion the blow from escalating Trump tariffs. Yet he may already be rethinking that view as Treasury markets come unglued amid President Donald Trump’s unprecedented assault on global trade flows. […]
Yet the 10-year Treasury yield surged more than half-percentage-point this week as of early Wednesday, rising back to its highest level since Feb. 20, when the S&P 500 was within 1% of its record high. A jump in Treasury yields will exacerbate the economic hit from Trump tariffs, boosting mortgage and auto-loan rates.
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