Stock-market bulls should be worried about rising consumer delinquencies, which were climbing well before President Donald Trump imposed his tariffs, according to Thierry Wizman, global foreign-exchange and rates strategist at Macquarie.
In a Monday client note, Wizman pointed to “underlying weakness among consumers” as a concern, but also to his expectation that the Federal Reserve “won’t cut rates early enough in [the second quarter], owing to its concern about tariff-driven inflation.”
Should import tariffs stick, they could act as a further drag on consumers, he said, adding that “policymakers will need to advance other initiatives soon” to improve the tone and investment backdrop for businesses and to “avoid a further slowdown” that endures beyond the second quarter of 2025.