Opinion: If Traders Still Doubt Tariff Effectiveness, Fed Rate Cut Is Unlikely
Odaily Planet Daily News Analyst John Higgins from Capital Economics pointed out in a report that even if the U.S. International Trade Court rules most of President Trump's tariffs invalid, the trading environment for stocks and commodities remains volatile and uncertain. Higgins stated that the stock market's reaction to the International Trade Court's decision was muted, as the market had long priced in the risk premium of Trump's tariff policies. He added that as long as traders continue to question the validity of tariff policies, the likelihood of a significant rate cut by the Federal Reserve is minimal. Additionally, agreements the U.S. has reached with other trade partners also face uncertainty. (Jin10)
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EIA expects Brent crude spot prices to remain at $100 per barrel for the rest of the year and raises the average price forecasts for this year and next.
The U.S. Energy Information Administration (EIA) has raised its forecast for average Brent crude oil prices in 2026 and 2027 to $97 and $86, respectively, reflecting pressures from global inventory declines, Middle East supply disruptions, and rising transportation costs. As oil production in the Middle East gradually recovers and global inventories rebound from low levels, the EIA expects the average spot price of Brent crude to fall to $87 per barrel in the second quarter of 2027, and further decline to $77 per barrel by the fourth quarter.


