Interest rates won’t fall as fast as expected if tariffs boost inflation, UBS CEO says
UBS CEO Sergio Ermotti during the annual meetings of the IMF and the World Bank in Washington, DC, October. 23, 2024
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The expected decline in interest rates could stall if expected tariffs from the second administration of Donald Trump’s White House penetrate markets and support inflation, UBS CEO Sergio Ermotti warned on Tuesday.
“Something I’ve been saying for a while, inflation is a lot stickier than we’ve been saying,” Andrew Ross Sorkin told CNBC. “The [truth] It is important that we also have to see how tariffs will play a role in inflation.”
“Tariffs probably won’t really help to bring inflation down. And so I don’t see rates coming down as quickly as people believe,” he said.
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