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He elaborates on how the current political climate, particularly trade tensions initiated by President Trump, has forced bond vigilantes to be more active in the markets. For instance, recent turmoil stemming from tariffs against China has raised concerns about inflation, which these vigilant investors are keen to monitor.
Navigating International Trade and Tariffs
The discussion then shifts to current trade dynamics, particularly the U.S. tariffs on China and their potential economic ramifications. Dr. Yardini points out the complexity of negotiations between President Trump and Chinese President Xi. Both leaders have much to lose if the situation escalates, yet neither wants to appear weak.