Monetary policy vs tariff policy 'rock paper scissors', Federal Reserve tries to come out laterDoes maintaining high interest rates have an impact on economic development Long term maintenance of nominal interest rates above 4% in the global tariff war and second half balance sheet reduction can indeed easily lead market expectations into a recession. Many institutions still believe that the tariffs imposed by Mexico and Canada are temporary measures that will be lifted once the purpose of expelling immigrants and returning manufacturing industries is achieved (currently unknown). Without specific tariff terms, the market cannot price in. At the trading level, the expected risk of interest rate cuts and the uncertainty risk of tariffs alternate. This type of trading is too difficult to do and opportunities cannot be found on the right side. The recent market trend should be more suitable for intraday traders or forex traders.