

Afsaneh Beschloss Talks Tariffs, Rate Cuts
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."
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.
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.