Tariffs Will Weaken Economic Activity, Hoisington Economist Says

The video discusses the economic impact of tariffs, highlighting their role in increasing inflation and reducing trade flows. It examines the significance of yield curve flattening, which often precedes recessions, and its effect on banking profitability. The Federal Reserve's influence on global liquidity is explored, noting a slowdown in money supply growth worldwide. Finally, the video addresses the implications of rising US debt and its interaction with monetary deceleration, predicting weaker economic activity in the near future.

What is one of the primary effects of increasing tariffs?

• Increase in inflation

• Strengthening of economic activity

• Increase in trade flows

• Decrease in inflation

What does a flattening yield curve typically indicate?

• Higher risk of credit mistakes

• Increased profitability for banks

• Decrease in monetary deceleration

• Increase in economic vibrancy

How many recessions followed the 17 flattening of the yield curve since 1921?

• 10

• 15

• 17

• 20

What is the effect of the Federal Reserve reducing the monetary base?

• Strengthening of economic growth

• Increase in M2 growth

• Decrease in world dollar liquidity

• Increase in global liquidity

What was one reason for better economic performance in the second quarter?

• Increase in global liquidity

• Peak federal stimulus

• Decrease in federal debt

• Reduction in tariffs