BofA warns Fed risks policy mistake with early rate cuts
Investing.com -- Citigroup (NYSE:C) CEO Jane Fraser stated on Monday that the majority of the bank’s clients could manage U.S. tariffs of 10% on the nation’s trading partners. However, she warned that companies are postponing investments and hiring until they have a clearer view of the economic situation.
Fraser, speaking at the Milken Institute Global Conference in Los Angeles, indicated that a 10% tariff rate would be manageable for most clients. However, she expressed concerns about the potential impact of a 25% tariff rate, saying that many clients would struggle to absorb such a high rate.
Fraser also highlighted that many companies are currently in a state of uncertainty, which she referred to as "limbo land". This uncertainty is causing some companies to suspend investment spending and put decisions regarding capital expenditure and hiring on hold. According to Fraser, these actions could have a significant effect on demand and the overall economy.
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