Analyst: Tightening monetary policy will drag down the prospects of the US economy.

date
09/05/2025
SignatureFD analyst Tony Welch stated that the drop in Treasury yields after the Federal Reserve meeting may indicate that investors are concerned about the impact of a tightening monetary policy on the economy. The economy is currently slowing down, and implementing a tighter monetary policy over a longer period would definitely be a negative factor. Trump's tariffs are influencing the Fed's thinking, as the FOMC statement mentioned trade "from the outset." Powell will use the word "uncertainty" multiple times during the press conference.