Crazy? That’s an understatement. It’s no wonder the financial markets are dazed and confused (a them we have explored in a past post as well). Try and follow the bouncing tariffs. Got a handle on the DOGE initiative? Inflation? Ha, not even the Federal Reserve knows. But wait. Is it all bad, or just confusing?
What about those “bouncing” tariffs? At first the very announcement of huge tariffs caused a panic with investors and governments around the world. Inflation would spike. Economies would crumble. OMG. It’s like taking off in a plane with the pilot coming on and saying “we lost an engine and are returning to the airport.” Planes can (and do) fly on one engine. But the financial markets acted like someone jumping up, running down the plane’s cabin yelling “the plane’s going to crash, we’re all going to die.” But the plane lands safely and those huge tariffs were for “discussion only” and are being eased. Scary at first, dazed and confused later.
So far the spike in inflation hasn’t happened. Will it happen? Egg prices and gasoline prices are coming down but other “goodies” are still high. No wonder the Fed has no idea what to do with interest rates.
Meanwhile, will there be a ceasefire and possibly an end to the war in Ukraine? Odd numbered days are YES, even numbered days are NO. Almost the same for the war in Gaza. Gotta check every hour,it seems.
Financial markets seem to coming around to the thought that maybe, just maybe, all this is going to work. Tariffs WILL be easing off, inflation MAY come down and wars will end. I know, radical thinking. Trump probably realizes that sometimes you need to hit people (governments, politicians, etc.) over the head with a baseball bat (he hits hard, too) to get their attention. Then talks begin. All works out.
Next Wednesday (April 2) is scheduled to be “Liberation Day.” No idea what that means but if you are in a Venezuelan gang, I wouldn’t get my hopes up. Probable news on tariffs being more selective (?) and softer. Or, more ways to be dazed and confused.
