Investors turn to US Treasuries due to recession fears from Trump's trade war

From Yahoo Finance: 2025-04-06 15:00:00

Investors are flocking to US Treasuries amid fears of a global recession due to Trump’s trade war, despite the risk of inflation from tariffs. The Federal Reserve may need to cut interest rates to prevent an economic slowdown, but rising prices could complicate matters. Stagflation, a combination of slow growth and high prices, could disrupt the bond market. Fed officials are facing a dilemma as they consider the impact of tariffs on inflation. Treasury yields have fallen, signaling concerns about a possible US recession. The Fed is closely monitoring inflation expectations to guide monetary policy decisions. Economic data releases this week will provide further insight into the situation. The Federal Reserve’s calendar for the week of April 7-11 includes various speakers and meetings, such as Fed Governor Adriana Kugler on the 7th and Federal Open Market Committee meeting minutes on the 9th. Auctions for Treasury securities are also scheduled, with bills and notes being offered on different days throughout the week. Stay updated on the latest actions and discussions within the Fed to understand their impact on the economy. Stay informed with Bloomberg Businessweek for the most relevant news and updates.



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