In This Article:
Bank of New York (BK) CEO Robin Vince and Yahoo Finance Executive Editor Brian Sozzi sit down at the 2025 World Economic Forum in Davos, Switzerland, to talk about US President Donald Trump's second term with a focus on the impact of tariffs, inflation, and the Federal Reserve's next move.
Trump has indicated he plans a 10% baseline tariff on all imports to the United States, with more significant targeted tariffs for some, like China. There has been debate about whether Trump will actually instate the significant tariffs or if the rhetoric is a negotiation tactic.
"Tariffs are and always have been a tool of trade policy, and the president's made it very clear that he wants them to be used as part of trade policy," Vince says.
The CEO notes, "I think if you put tariffs on top of everyday items that Americans are consuming, that they go to their local store, grocery store, or home goods store and buy, they can be inflationary. But at the same time, tariffs well applied can also make US businesses more competitive."
Related Videos
Discussing what to expect from the Fed, Vince says, "I don't think anybody should rule out anything," including a rate hike from the Fed. We're risk managers. It's our job to be prepared. It's our job to be agile," he says, adding, "You've got to be able to work with Congress, with the incoming administration, with regulators, and you've got to be able to adjust."
The bank CEO says he expects the Fed to pause while the US economy sees how inflation plays out.
Click here for more of Yahoo Finance's coverage from the World Economic Forum in Davos.
Check out Yahoo Finance's Davos interview with Bank of America (BAC) CEO Brian Moynihan here.
This post was written by Naomi Buchanan.