We are stuck in the trade war and no one seems to foresee any clear path. Actually, before the US-China trade war was on everyone’s mind, the biggest fear facing the global investors should be rising interest rates.
Federal Reserve Chairman Jerome Powell emphasised that the economy is doing very well in June 2018. Some say that the Fed is going to act because of the US job market and inflation instead of the political news. In other words, if the trade wars have no impact on the US job market and inflation, the Fed will keep rising interest rates and two more hikes in 2018 are coming. Furthermore, the Fed has so many reasons to keep rising interest rates gradually. And I believe that the Fed plans to keep hiking even though the risks of trade war mount.
We are going to see that rising interest rates and trade wars will happen at the same time! Are you well prepared for that?