Larger-Than-Expected Tariffs Trigger Flight for Safety -- Market Talk

Dow Jones04-03

1048 ET - Trump's tariff increases were larger than expected, triggering a flight for safety in financial markets, Comerica's Bill Adams says. Stocks are down and bond prices are rising, sending yields lower "as investors have been moving out of risk assets like stocks and into risk-free assets like long-term Treasurys," he says. Futures pricing indicates higher odds of interest rate cuts by the Fed, but Adams says the pricing is likely a reflection of higher demand for bonds and not necessarily bets on monetary policy. "The economy would have to deteriorate quite a bit for the Fed to cut rates while inflation is rising in the next 12 months," he says. (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

April 03, 2025 10:48 ET (14:48 GMT)

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