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Economist warns U.S.-China tariff deal won't fix economic uncertainty, risking stagflation.
Economist Diane Swonk warns that the temporary U.S.-China tariff deal, reducing tariffs on Chinese goods, does not ease economic uncertainty and may lead to stagflation, characterized by high inflation, unemployment, and slow growth.
Swonk likens the situation to a broken stoplight, causing businesses to hesitate.
She also notes the difficulty of negotiating quick trade deals with multiple countries without a multilateral framework, and warns of potential policy mistakes.
Despite the deal, the Federal Reserve plans to wait until inflation is under control before considering rate cuts.
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Economist advierte que el acuerdo arancelario entre Estados Unidos y China no solucionará la incertidumbre económica, arriesgando la estanflación.