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He explains the possibility of China devaluing its currency in retaliation against U.S. tariffs, creating a complicated scenario that could lead to further instability in the global economy. With crude oil prices at a four-year low, the hope remains that consumer prices may remain stable, despite tariffs affecting other sectors.
The Impact of Oil Prices and Consumer Behavior
The decline in oil prices has raised questions regarding the broader impact on consumer prices. Dr. Yardini suggests that lower oil prices could lead to reduced costs, easing inflationary pressures. However, the implications of ongoing tariffs, particularly on autos, could counteract this benefit, leading to higher prices in that sector.