Bloomberg Talks

Afsaneh Beschloss Talks Tariffs, Rate Cuts

Jul 7, 2025
Afsaneh Beschloss, CEO and founder of Rock Creek Group, dives into the turbulent waters of market dynamics influenced by recent tariff announcements. She shares her insights on how these tariffs may lead to continued market choppiness and discusses the potential for interest rate cuts by the Federal Reserve. The conversation also explores institutional investors adjusting their strategies in response to economic shifts, with a close look at consumer costs and the evolving trade landscape between China and Vietnam.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Why Afsaneh Beschloss Predicts Market Choppiness and Fed Rate Cuts Soon

Afsaneh Beschloss explains that the recent tariffs announced by President Trump, especially the jump to 25% from an expected 15-17%, will cause continued market volatility and choppiness. She highlights the uncertainty around the timing and amounts of tariffs on key trade partners like Japan and Korea as a major market disruptor.

Beschloss anticipates interest rate cuts could come as early as September due to potentially slower U.S. growth from these trade tensions. She advises investors to consider diversification away from U.S. equities over time, looking at European, Japanese, and emerging market stocks and bonds, as well as gold.

She notes the rich valuations in U.S. stocks and the risk to earnings from tariffs, suggesting institutions are already adjusting portfolios through FX hedging and geographic reallocation.

> "We might see interest rates come down, which also has impacts on the dollar... diversification away from U.S. assets over time."

INSIGHT

Markets Shocked by 25% Tariffs

  • The market was shocked by new tariffs rising to 25%, higher than the anticipated 15-17% range.
  • This shock and uncertainty over tariffs on key partners will keep markets volatile.
INSIGHT

Tariffs Could Trigger Rate Cuts

  • U.S. growth may slow due to tariffs, which could lead to interest rate cuts as soon as September.
  • This may also weaken the U.S. dollar, prompting diversification away from U.S. assets.
Get the Snipd Podcast app to discover more snips from this episode
Get the app