Opening Bid Trump tariff volatility pops CEO happiness bubble
12 snips
Mar 26, 2025 
Gary Cohn, IBM Vice Chairman and former Director of the National Economic Council, shares insights on the economic landscape shaped by tariffs and inflation concerns. He offers a fresh perspective on tariffs as a tax that fuels inflation, contrasting with the Trump administration’s stance. Cohn discusses the potential impacts of reciprocal tariffs on upcoming economic decisions and delves into the tech sector, particularly AI's role in transforming businesses. He emphasizes the need for clarity in market regulation to restore investor confidence.
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Market Recalibration
- Markets experienced optimism during Davos, fueled by anticipated policy changes and economic growth.
- However, market recalibration and transitions create messy periods, despite current data not being recession-worthy.
Tariff Impact
- Tariffs' economic impact depends on their objective and implementation.
- Cohn suggests that tariffs on luxury goods are less inflationary than tariffs on consumer staples.
Market Advice
- Markets thrive on predictability and certainty.
- Ambiguity creates negative market reactions.