One of the world’s leading authorities on Asia sees a destructive element baked into the U. S. and China trade war.
There’s a growing risk that trade tensions between the world’s two largest economies may converge with other factors to disrupt the global economy — and knock the historic U. S. stock market rally off its stride, according to one of the world’s leading authorities on Asia.
Yale University senior fellow Stephen Roach is worried the US-China trade war is putting sand in the gears of global supply chains, which has been playing a vital force in keeping price pressures in check. Roach referred to the threat as one of the „more destructive“ layers of the trade war for stocks.
„You’ve got potentially a lethal combination between a hot labor market in an unwinding of the supply chain effects on the global front which could give you a surprising surge in inflation that the Fed is not positioned to really address with its still very, very low federal funds rate,“ he warned Friday on CNBC’s “ Trading Nation .
