Wall Street is afraid of the wrong thing when it comes to Trump’s trade wars
|04/26/2018||Posted by BusinessMediaguide.Com under General World News||
- Wall Street is on the fritz again about rising bond yields.
- The concern stems from a misguided fear that tariffs and a potential trade war will raise inflation more than they hurt growth.
- “Tariffs and other protectionist measures do not create inflation, they just lead to a temporary increase in the price level,” writes Roberto Perli, ex-Federal Reserve economist and partner at Cornerstone Macro LLC, in a research note.
Rising US bond yields are making stock investors nervous again — but many on Wall Street are worried about the wrong thing.