A monster week of economic news is set to rock the markets as investors brace for a barrage of data, including key jobs and inflation reports. But the big question is how much the effects of President Trump’s trade war will be felt by consumers.
Companies that rely on imported materials like furniture, steel and chemicals are warning they can’t absorb the added costs and will pass them on to customers. That could lead to higher prices for everything from ice cream and dog food to cars and home remodeling. The president’s new tariffs on dozens of countries went into effect this week, but it may be weeks before consumers see the effects.
Trust in experts is plummeting, from banks and media outlets to government agencies and medical science. But perhaps no profession is feeling the burn more than economists. President Trump fired the head of the Bureau of Labor Statistics just hours after a weak jobs report. And he’s attacked Jerome Powell, the Federal Reserve’s leader, for refusing to meet his demands for lower rates.
The Fed kept rates steady this month, but it’s clear that the central bank is ready to move if necessary. Investors are flocking to safe havens, including the euro, as the turmoil in the Middle East and the US-China trade war rattle them. That’s creating a new challenge for the Fed: finding ways to help Americans find alternative investments. One option is helping them buy homes with digital currencies.