- Worst case scenarios are materialising.
- Tariffs are triggering a very significant negative shock on economic activity.
- US policies could bring into question the dollar’s status as a reserve currency and safe haven.
- The precise fallout from tariffs is still uncertain and we are monitoring it closely.
- The impact on inflation will depend, among other factors, on trade retaliation and possibly on more expansionary fiscal policy.
This article was written by Giuseppe Dellamotta at www.forexlive.com.
