Central Banks Unlikely to Bail Out Markets If Trade War Worsens: JPM

The transcript discusses the significant impact of the ongoing trade war on the global economy, emphasizing the need for trade tensions to ease. It highlights the challenges of predicting trade developments and the potential risks of an economic downturn if tensions escalate. The discussion compares the importance of trade policy versus monetary policy, noting that central banks may struggle to counteract severe trade disruptions. The potential consequences of increased tariffs, particularly on China's exports to the US, are also explored, with concerns about the ability of central banks to mitigate these effects.

Why is it crucial for the global economy to resolve trade war concerns?

• To increase the non-linear development of trade

• To reduce the problematic impact on the global economy

• To escalate trade tensions further

• To ensure central banks can react effectively

What approach is suggested for risk assets amid fluctuating trade tensions?

• A more aggressive approach

• A more speculative approach

• A more neutral approach

• A more conservative approach

How does the trade story compare to central bank policies in terms of market importance?

• Trade is less important than central bank policies

• Trade is equally important as central bank policies

• Trade is more important than central bank policies

• Trade is not related to central bank policies

What could happen if trade tensions escalate to a 25% tariff on all Chinese exports to the US?

• The equity market would thrive

• Central banks would easily offset the impact

• It would be difficult for central banks to offset the impact

• Trade tensions would decrease

What assumption is the equity market making about central banks?

• That central banks will escalate trade tensions

• That central banks will save the day

• That central banks will ignore trade tensions

• That central banks will focus solely on inflation