NEW YORK- US Treasury yields inched higher on Wednesday as investors weighed potential exemptions from US President Donald Trump’s tariffs and Federal Reserve officials signaled a patient approach to interest rate cuts.
Trump indicated on Monday that not all of his threatened levies would be imposed on April 2 and some countries may get breaks. This has given some reprieve this week to investors rattled by the expected inflationary impact and hit on US growth from aggressive US trade policies.
Still, uncertainty around US import levies gripped markets again on Wednesday as Trump prepared to announce tariffs on the auto industry later in the day.
“This psychological churn is, I expect, what we’ll see at least until that April 2 date, but probably even beyond, because there’s so many moving parts. We have all the macro data and we have all the tariffs uncertainty,” said Mark Hackett, chief market strategist at Nationwide.
