Roubini Predicts Powell Will Delay Fed Action Until Trump Responds

Nouriel Roubini, known for predicting the 2008 financial crisis, cautioned traders against expecting quick actions from the Federal Reserve to stabilize markets affected by President Trump's tariffs. Recently, Trump increased tariffs on various nations, including a 104% levy on Chinese imports, leading to a significant market downturn.

The Nasdaq 100 dropped 12% and bitcoin fell 10%, falling below $75,000.
U.S. Treasury market volatility intensified, with yields on longer-dated bonds rising sharply.
Concerns of a potential dollar liquidity crisis have emerged, reminiscent of the COVID crash.
Traders anticipate five quarter-point interest-rate cuts from the Federal Reserve this year.
Roubini argues that Fed Chair Jerome Powell will wait for Trump to ease his stance before intervening.
A single positive tweet from Trump regarding trade negotiations could rapidly change market sentiment.
Roubini expects persistent inflation due to high tariffs, impacting long-term bond performance.
He also predicts the U.S. will avoid entering a recession, contrary to prevailing market fears.