Tiffany Wilding
Tariffs, Technology, and Transition
Locking in attractive bond yields can support long-term returns, especially as central banks cut interest rates and tariff effects pose risks to global economic growth and inflation.
The Federal Reserve cited increasing risks to the U.S. labor market as a reason to ease monetary policy.
Fed officials remain patient, likely awaiting hard evidence of a weaker U.S. labor market before considering rate cuts.
Challenges to Fed Independence
Although President Trump has said he has no intention of firing Fed Chair Powell, the Trump administration may be testing the laws underpinning Fed independence.
The outlook for U.S. growth and inflation hinges on the ability of U.S. supply chains to pivot out of China fairly quickly, a process that won’t be seamless.
PIMCO Economist Tiffany Wilding shares her analysis of select countries’ fiscal and trade imbalances influencing recent U.S. tariff policy and their implications for inflation and recession risks.
Recent market turbulence underscores a shifting global outlook as tariffs usher in a new economic era.
Tariff policies have the potential to drive stagflation in the U.S. and contraction in other countries, and to complicate the Federal Reserve’s monetary decisions.
Seeking Stability
At a time of sweeping geopolitical change and clear challenges for riskier assets, bond markets offer a source of stability.