Markets pressuring US to change course: Feigenbaum

Evan A. Feigenbaum, Vice President for studies at the Carnegie Endowment for International Peace, believes that the financial markets are pressuring the US administration to change course.

- TBG NETWORK

Talking to ANI on the sidelines of Carnegie Global Technology Summit, Feigenbaum said US administration can't be completely oblivious of what's happening in terms of "faith and confidence" in American stewardship.

"I think a lot of people think this is now between the US and China, because the president has rolled back his initial tariffs, mostly on everybody except for China, but the reality is because of what's happening in the bond market and also to the US dollar, where traditionally safe assets that are branded to the United States are trading as if they're risky assets, I think there's a lot of pressure from the markets on the administration to change course," he said.

The tariff war between the US and China, according to Feigenbaum, is going to be quite catastrophic for both countries.

He asserted that for the United States, it could mean supply shortages and inflation.