Bloomberg Daybreak: US Edition Global Market Meltdown Deepens; Trump Retains Tariff Stance
Apr 7, 2025
Andrew Sheets, Chief Cross-Asset Strategist at Morgan Stanley, sheds light on the escalating chaos in financial markets due to President Trump's tariffs. He discusses the staggering $5 trillion loss in equities and the government's unyielding stance amid fears of recession and inflation. Traders anticipate multiple Federal Reserve rate cuts as global markets grapple with severe downturns reminiscent of the COVID crisis. Sheets also explores the broader implications of ongoing trade tensions and geopolitical issues on economic stability.
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Market Sell-off and Defiant Stance
- Global markets are experiencing a sell-off after President Trump's tariff announcement.
- Trump's economic team defends the tariffs, dismissing recession fears.
Expert Opinions on Tariffs and Market Uncertainty
- Experts like PIMCO's Libby Cantrell predict tariffs will remain for a while.
- Others, including Mohamed El-Erian, highlight market uncertainty and potential for further decline.
Federal Reserve Rate Cut Expectations
- Traders anticipate the Federal Reserve will cut interest rates five times this year due to tariff-induced recession fears.
- JPMorgan's Bob Michael suggests the Fed might act before May, while DoubleLine's Jeffrey Gundlach disagrees.