No one’s work promoted the term “political business cycle” and the idea of incumbent politicians manipulating the economy for the retention of political power more than William Nordhaus.
Powell avoided naming stagflation but outlined its ingredients—rising inflation and unemployment—and linked these risks to tariff policies. The Fed is clearly signaling that tariff relief is essential for monetary easing.
A country’s largest trading partners play a pivotal role in shaping its economic stability, currency strength, and market potential—all of which influence investor sentiment.
