In this episode of Grow Money Business we review what the markets have done as news of trade negotiations has trickled out over the last few weeks. We review whether tariff policy leads to inflation to consumers, Moody’s recent downgrade of US debt, and what to look for in the coming weeks as we approach the 90-day tariff pause deadline.
Show Notes
[01:50] Market Update – Market performance in the last month.
[04:08] Article of the Week – A press release from Moody’s about the downgrade of US government debt.
[15:43] The Pause on Tariffs – Grant explains the market reaction to the 90-day pause on tariffs announced in April.
[19:24] The Risk of Inflation – A 2.2% increase in consumer prices, predicted by the San Francisco Federal Reserve Bank.
[26:00] Impact on Consumers – Grant shares what he thinks about the claims that tariffs only affect the foreign exporters.
[28:13] Tariffs at the Checkout – Grant shares the results of a recent study by the Federal Reserve on tariffs’ impact on consumers.
[32:18] Investment Decisions – Grant explains why it’s not a good idea to make investment decisions based on short-term predictions.
[33:20] Corporate Reactions – The different ways tariff policies impact companies and, eventually, customers.
Resources
Moody’s Ratings downgrades United States ratings to Aa1 from Aaa; changes outlook to stable
moodys.com/web/en/us/about-us/usrating.html
The Effects of Tariffs on Inflation and Production Costs
Detecting Tariff Effects on Consumer Prices in Real Time