Given the steep plunge in Tesla shares this year, the AFT president is urging money managers to “safeguard retirement assets” and urgently review their current holdings in electric carmaker Tesla, which is a target of political protests amid growing animosity for the brand.
“When you look at the balance of the dual mandate right now, it is certainly much more challenging. I think the Fed is going to have to practice much more patience from here.”
Fed officials must decide this year whether to lower interest rates further to support the economy, or keep them elevated for longer to contain inflation. First they need to determine what proportion of inflation is tariff-related and whether that increase is temporary.
“Despite policy uncertainty and downbeat consumers, the March top-line number was a good one for the economy and employers of all sizes, if not necessarily all sectors.”
