Supreme Court special: What the Trump tariffs ruling means for macro and markets

The Supreme Court has finally ruled on Donald Trump's tariffs with an opinion that the president has no right to impose tariffs under the International Emergency Economic Powers Act. So what happens now?

Deputy Chief North America Economist Stephen Brown and Deputy Chief Markets Economist Jonas Goltermann join The Weekly Briefing from Capital Economics to discuss the implications of this legal ruling for the US economy, for Federal Reserve policy and for financial markets. In their conversation with David Wilder, Stephen and Jonas address key issues, including:

• How the White House could rebuild its tariff regime – and rebuild it quickly
• What happens when billions of dollars in tariff refunds flow back into US company accounts 
• Why signs of resurgent inflationary pressures are narrowing the room for Fed rate cuts
• How the bond market is responding to the Supreme Court news
• Why the stock market rally has stalled, and whether this news could get it going again.

Related reading

IEEPA ruling unlikely to pull PCE inflation back to 2%
https://www.capitaleconomics.com/publications/us-economics-weekly/ieepa-ruling-unlikely-pull-pce-inflation-back-2

Stock market rotation is a warning of trouble ahead
https://www.capitaleconomics.com/publications/capital-daily/stock-market-rotation-warning-trouble-ahead

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https://www.capitaleconomics.com/publications/global-economics-rapid-response/sc-rules-trumps-ieepa-tariffs-are-illegal