In This Article:
Uncertainty surrounding President Donald Trump's policies, particularly tariffs and fiscal measures, could create significant challenges for US corporate earnings in the coming quarters.
BlackRock lead portfolio manager on the Global Tactical Asset Allocation (GTAA) team, Tom Becker, believes that while the Trump administration's policies themselves are uncertain, it is the lack of clarity that is the main issue.
"I mean, in terms of how we're positioned, we think US inflation is going to stay sticky and high," Becker says to Catalysts hosts Madison Mills and Seana Smith.
"So, some certainty on the tariffs and kind of the amount of... price impact of those would be helpful. That said, I think... our expectation is that there's going to be some consolation of tariffs that is going to keep goods inflation high."
Becker points out that fiscal stimulus, including potential tax cuts, may fuel the economy but could complicate the bond market (^TYX, ^TNX, ^FVX) — particularly in the long term.
Related Videos
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Josh Lynch