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President Trump announced his Liberation Day tariffs. It turns out they're even bigger than the smooth Holy tariffs at the beginning of the Great Depression. The move drew this reaction from Bob Michael, the chief investment officer at JP Morgan Investment Management.
Given as how tariffs stand as they were announced, that's going to push the US economy into recession. They're dramatic. Its attacks on businesses and households. It's going to cause them to retrench. It's worse than most expectations. I think the caveat is we don't know what the policy response will look like. We still have until April ninth for the majority of the tariffs to be enacted, so there could be a lot of negotiation.
Seema Sean about global investors, looks at prices and growth the terrors, she says will bring the worst of both worlds.
The part which is probably most concerning for investors is the announcement yesterday is very styflationary, and we know from looking at previous regime, previous market movements over history that stackflation is typically the regime where rarely does any asset class do particularly well.
Doug Irwin, John French, professor at dartminth says the idea that terroriffs will bring jobs back to the US is a false home.
Even if we bring back some of the factories to produce these things, because the cost of importing is much higher, the jobs probably won't follow. Even with textiles and apparel, a lot can be automated. And so when we think about the steel industry, which has always been near and dear to the President's heart, in the nineteen eighties, it took ten worker hours to produce a ton of steel.
Now it takes one. We're producing just as much steel, but we just need many fewer workers because and the type of workers that we need to produce steel has changed from blue collar to white collar, from hard labor to engineer monitoring equipment, and so the whole nature of the economy has changed. So we're not in the twentieth century anymore. We're in the twenty first century, and to go back to the nineteenth century is going to be
really hard pull. And that's why the markets are reacting the way they are.
A Wall Street legend. At at your Denny Research, the man who famously coined the term bond vigilante, had this message for the administration on behalf of the stock market vigilantes.
I'd like to say, mister President, take down this tariff wall.
This is the most absurd policy that one could possibly imagine, and it's a disaster for the economy.
It's a disaster for the stock market.
And I think the pushback on the administration from the stock market vigilantes is already quite intense.
This is turning out to be not Liberation Day plus one, It's turning out to be D Day in the on Wall Street