Trump Will Keep Up Trade Pressure for Few Months, Says BNP Paribas' Morris

The video discusses the potential impact of US tariffs on China, considering both economic and political factors, especially in light of upcoming midterm elections. It explores how trade tensions can influence inflation, with a focus on the Federal Reserve's perspective on growth and inflationary pressures. The discussion also covers market reactions, particularly in equities and the treasury market, highlighting concerns about trade risks and their effects on treasury yields.

What is one of the main reasons Trump might maintain pressure with tariffs until the elections?

• To decrease inflation rates

• To increase the stock market volatility

• To gain political advantage

• To reduce trade with Europe

How do trade tensions potentially affect inflation according to the discussion?

• They only cause deflation

• They only cause inflation to rise

• They can be both inflationary and deflationary

• They have no impact on inflation

What is the Federal Reserve's likely focus regarding the impact of tariffs?

• Increasing interest rates

• Promoting economic growth

• Addressing deflationary factors

• Reducing unemployment

Why might the treasury market appear calm despite trade tensions?

• It is less concerned with trade risks

• It focuses on opportunities rather than risks

• It is more worried about trade risks

• It is unaffected by economic changes

What is a key difference between the equity and treasury markets' reactions to trade risks?

• Both markets react similarly to trade risks

• Equities are more stable than treasuries

• Equities are more volatile, treasuries are more concerned with risks

• Treasuries focus on opportunities, equities on risks