Fundamentals, Not Tariffs, Expect to Ultimately Drive Dollar

(Dow Jones) — Tariffs are important, but economic indicators and Fed policy are likely to remain the key driver for Treasury yields and the dollar in the longer run, AmeriVet’s Gregory Faranello says. Investors still face uncertainties after President Trump failed to announce widespread tariffs, weakening the dollar and keeping yields subdued. Faranello says it could all change depending on how prices behave. He expects inflation to be sticky, keeping the Fed on hold for longer than currently priced and supporting the currency. “The dollar is likely to remain on the stronger side,” Faranello says. “It is really just noise what we are seeing right now”
regarding tariffs, he said.