Opinion by: Maksym Sakharov, co-founder and group CEO of WeFi
The current markets are experiencing tailwinds as a result of the tariffs imposed by the US administration and retaliatory measures from trading partners. So far, however, market proponents say that Trump’s tariffs are primarily a negotiation strategy, and their effect on businesses and consumers will remain manageable.
Market uncertainty drives institutional interest
Adding to the uncertainty are the inflationary pressures that could challenge the US Federal Reserve’s rate-cutting outlook. Besides that, an impending fiscal debate in Washington over the federal budget is also causing jitters in the market.
Resolving the debt ceiling remains a pressing issue, as the Treasury currently relies upon “extraordinary measures” to meet US financial obligations. The exact timeline for when these measures will be exhausted is unclear, but analysts anticipate they may run out after the first quarter.
While the administration has proposed eliminating the debt ceiling, this could face resistance