Interest rates won’t fall as fast as expected if tariffs stoke inflation, UBS CEO says

An expected decline in interest rates could be stalled if the prospective tariffs of Donald Trump’s second White House administration bleed into markets and shore up inflation, UBS CEO Sergio Ermotti warned Tuesday. Markets have been on alert for the next trade steps of the newly inaugurated Trump, who has threatened to impose 25% tariffs on Mexico and Canada, while also floating a separate set of retaliatory trade measures against China in a bid to pressure Beijing to force ByteDance’s sale of TikTok.
Source: CNBC – Bonds