Bloomberg (July 6)
“Donald Trump’s war against Iran may be over, but the repercussions for global monetary policy are here to stay.” In particular, “the path for central bank interest rates around the world has now shifted higher for years to come.” Forecasts for borrowing costs calculated by Bloomberg Economics (BE) “show trajectories elevated by as much as half a percentage point or more through 2028 compared with those envisaged before the war. That’s both on BE’s global gauge for rates, and its measure for advanced economies.”
Tags: 2028, Bloomberg Economics, Borrowing costs, Central bank, Elevated, Forecasts, Global, Higher, Interest rates, Iran, Monetary policy, Repercussions, Trump, War
Barron’s (May 19)
“Bond markets haven’t been swayed by President Donald Trump’s latest assurances on the war with Iran, with yields holding stubbornly higher” and impacting the broader economy. “Elevated bond yields are contributing to rising inflation, with April producer inflation at its highest since December 2022, challenging growth investments.” It appears “the bond market is forcing a reckoning Trump isn’t able to stop.”
Tags: April, Assurances, Bond markets, Broader economy, Elevated, Growth investments, Iran, Producer inflation, Reckoning, Rising inflation, Swayed, Trump, War, Yields
