Jiahuang Bank: Tariffs will first raise US inflation and then impact the economy, delaying interest rate cuts.

Blake Gwinn, head of US rate strategy at Royal Bank of Canada, said that tariffs could lead to inflation in the United States, which would then harm economic growth. This could delay the time for the Federal Reserve to cut interest rates. "Our assumption is that inflation will first impact, and the drag on the economy will come later," he said. Currently, there is too much uncertainty in tariff policy, and businesses cannot make decisions about layoffs or production cuts. "This delays expectations of when the Fed will react." Royal Bank of Canada expects the Fed to cut rates three times this year, starting in September.