Digest | 21 April 2025
- Edward von der Schmidt
- Apr 21
- 6 min read
Updated: May 4
Nascent concerns about central bank independence amid tariff-related risks weighed on US assets on Monday. Major equity indices declined by more than 2%, gold climbed to a record above $3400 per troy ounce, the dollar plumbed multi-year lows, and longer-term Treasury yields climbed materially. The administration's discontent with the absence of monetary easing signals prompted rule of law considerations and reinforced fears of diminished inflation-fighting credibility. Trade statecraft and security cooperation highlighted a dynamic geopolitical environment as US-Iran negotiations progressed over the weekend and Ukraine talks came back into focus. Prevailing economic uncertainty will presumably keep the Fed on hold through June and likely until September, inflation-permitting.