Yardeni said tariffs will be a key discussion point when Prime Minister Narendra Modi meets US President Donald Trump on February 13.
Also Read: Trump may announce tariffs on all partner countriesTrump’s approach has been to push for reciprocal tariffs, negotiating trade terms with key partners worldwide. Yardeni expects the US to pressure India on aligning more with American interests, particularly in the context of broader geopolitical changes, including China’s global role.
“I guess the answer is, India would prefer to be on neither side—prefer to be on its own side,” Yardeni remarked, suggesting that New Delhi will try to balance its trade and strategic priorities without being forced into a binary choice between the US and China.
Yardeni does not expect further interest rate cuts by the US Federal Reserve this year. Strong economic data, particularly from the labour market, supports the case for rates staying where they are. “I’m currently in the ‘none and done’ camp for 2025,” he said.
Also Read: Trump to announce 25% tariffs on steel, aluminium
A strong US economy and trade tensions have also influenced currency markets. While the dollar has cooled slightly from its recent peak, Yardeni sees it gaining strength, particularly against commodity currencies.
Gold is at record highs, and Bitcoin remains volatile, adding to the complexity of the broader market outlook.
Also Read: Citi’s Drew Pettit on what’s next for global markets
Also Read: Geoffrey Dennis expects dollar, bond yield to firm up
For the entire interview, watch the accompanying video
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(Edited by : Shweta Mungre)
First Published: Feb 10, 2025 11:57 am IS
