U.S. Trade Policies May Influence Interest Rates, Say Analysts

According to Odaily, BMO Capital Markets' U.S. rate strategists Ian Lyngen and Vail Hartman have indicated that the direction of U.S. interest rates could shift rapidly as U.S. President Donald Trump continues to refine the country's trade policies. Federal Reserve Chair Jerome Powell's testimony on Tuesday is expected to be closely watched, as it will provide insights into how he will describe the tariffs announced so far and whether these measures might prompt the Federal Open Market Committee (FOMC) to respond through monetary policy. The analysts maintain that the greater the increase in tariffs, the more likely Powell is to delay the normalization of monetary policy until later this year.