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Market participants have seen President Donald Trump's aggressive trade strategy as widely inflationary, leaving most wondering how the Federal Reserve's monetary policy will be affected moving forward.
Jason Furman, Harvard Kennedy School of Government professor and former Council of Economic Advisers chairman under President Obama, joins anchors Seana Smith and Brad Smith on "Morning Brief" to discuss the dynamic between the Fed and Trump's tariff strategy.
"There's no doubt that the anticipation of future tariffs is an extra reason for the Fed to raise the bar on what it would take to resume rate cuts," Furman says.
Overall, Furman says that interest rate hikes are "on the table" this year. He notes that the central bank could justify rate hikes, for example, if there were "something like a 10% across-the-board tariff."
To watch more expert insights and analysis on the latest market action, check out more "Morning Brief" here.
This post was written by Angel Smith
