- U.S. stocks closed at a record high last week on optimism around tariffs, but the economic outlook is hugely uncertain.
- Economic modeling is “very difficult” right now because “things are changing constantly,” Atlanta Fed President Raphael Bostic told CNBC.
- Markets may be taking a “naive view of what’s happening on the trade front,” said Bob Parker, senior advisor at the International Capital Markets Association.
U.S. stocks have strongly rebounded after a rough start to the year, even as the outlook for the world’s largest economy and its interest rates remains as uncertain as ever.
Economic modeling is “very difficult” right now because “things are changing constantly,” Atlanta Fed President Raphael Bostic told CNBC’s “Squawk Box Europe” on Monday, pointing to Canada’s recent walk-back on its digital services tax.
Market participants are also closely-watching the latest progress of U.S. President Donald Trump’s “big, beautiful bill,” which cleared a key Senate hurdle over the weekend.
From an inflation perspective, that means focusing on the expectations of businesses and consumers, along with the actions they are taking in response, Bostic continued.
Source: https://www.cnbc.com/2025/06/30/us-stocks-hit-record-highs-but-the-economic-outlook-is-no-clearer.html