Increasing pressure from rising borrowing costs could soon force Washington to scale back its protectionist stance. Bank of America’s chief investment strategist Michael Hartnett predicts that tariffs will decline this quarter to avoid destabilizing the massive U.S. debt funding machine.
In a note shared Friday, Hartnett said the U.S. trade deficit hit a record $140 billion in March, highlighting decades of structural imbalances that have pushed American policymakers toward a protectionist posture.
Yet, despite that deficit, the U.S. has long benefited from a financial account surplus — meaning it has consistently attracted more foreign capital than it sends abroad.
A Tipping Point For Trade Policy?
“The flipside of big deficit… big $540 billion foreign inflows to U.S. assets past 5 years,” Hartnett said, underscoring how the U.S. has been able to finance its deficits through global investor demand.
Yet that flow of funds is now at risk. Hartnett warned that the inflationary impact of tariffs, especially those imposed on April 2’s “Liberation Day,” combined with a weakening dollar, could …
Full story available on Benzinga.com
Increasing pressure from rising borrowing costs could soon force Washington to scale back its protectionist stance. Bank of America’s chief investment strategist Michael Hartnett predicts that tariffs will decline this quarter to avoid destabilizing the massive U.S. debt funding machine.
In a note shared Friday, Hartnett said the U.S. trade deficit hit a record $140 billion in March, highlighting decades of structural imbalances that have pushed American policymakers toward a protectionist posture.
Yet, despite that deficit, the U.S. has long benefited from a financial account surplus — meaning it has consistently attracted more foreign capital than it sends abroad.
A Tipping Point For Trade Policy?
“The flipside of big deficit… big $540 billion foreign inflows to U.S. assets past 5 years,” Hartnett said, underscoring how the U.S. has been able to finance its deficits through global investor demand.
Yet that flow of funds is now at risk. Hartnett warned that the inflationary impact of tariffs, especially those imposed on April 2’s “Liberation Day,” combined with a weakening dollar, could …
Full story available on Benzinga.com
Increasing pressure from rising borrowing costs could soon force Washington to scale back its protectionist stance. Bank of America’s chief investment strategist Michael Hartnett predicts that tariffs will decline this quarter to avoid destabilizing the massive U.S. debt funding machine.
In a note shared Friday, Hartnett said the U.S. trade deficit hit a record $140 billion in March, highlighting decades of structural imbalances that have pushed American policymakers toward a protectionist posture.
Yet, despite that deficit, the U.S. has long benefited from a financial account surplus — meaning it has consistently attracted more foreign capital than it sends abroad.
See Also: US Stock Futures Flicker Between Gains And Losses After Strong Three-Day Run: ‘Tariffs Are Steering The Boat Again,’ Says Expert
A Tipping Point For Trade Policy?
“The flipside of big deficit… big $540 billion foreign inflows to U.S. assets past 5 years,” Hartnett said, underscoring how the U.S. has been able to finance its deficits through global investor demand.
Yet that flow of funds is now at risk. Hartnett warned that the inflationary impact of tariffs, especially those imposed on April 2’s “Liberation Day,” combined with a weakening dollar, could …Full story available on Benzinga.com Read MoreAnalyst Color, Donald Trump, Equities, Government, Macro Economic Events, Michael Hartnett, Regulations, SPY, Stories That Matter, tariffs, Trump Tariffs, Broad U.S. Equity ETFs, Treasuries, Econ #s, Top Stories, Economics, Analyst Ratings, ETFs, SPY, US78462F1030, Analyst Color, Equities, Government, Regulations, Macro Economic Events, Broad U.S. Equity ETFs, Treasuries, Econ #s, Top Stories, Economics, Analyst Ratings, ETFs, Benzinga Economics
