Although “the mood music with China has improved,” the bank’s chief economist still expects other tariffs increases—and sees “a meaningful risk that some of the paused ‘reciprocal’ tariffs will take effect after all.”
“The price of those policies will be first paid at the ports and then spread to the rest of the economy,” RSM’s Joseph Brusuelas wrote, referring to the president’s tariff and trade policies.
“The president putting this pressure on the Fed would not actually achieve his goal, if his goal is lower mortgage rates,” said Chen Zhao, Redfin economics head.