Sergio ErmottiCEO of the $UBSG (+0.91%)expressed concerns at the #wef2025 concerns that an expected decline in interest rates due to the trade policies of the second term of Donald Trump could be delayed. In his view, inflation remains stubbornly higher than many experts suspect, due in part to the impact of trade tariffs.
Tariffs are expected to do little to reduce inflation. Instead, they could continue to drive up prices, reducing the likelihood of a faster rate cut.
