Ex-Treasury Secretary Larry Summers Warns Trump's Re-Election May Push Mortgage Rates Beyond 10%: 'Never Been A Presidential Platform So Self-Evidently Inflationary'
Portfolio Pulse from Shanthi Rexaline
Former Treasury Secretary Larry Summers warns that Donald Trump's re-election could lead to significant inflationary pressures, potentially pushing mortgage rates above 10%. Summers criticizes Trump's economic policies, which include compromising the Federal Reserve's independence, enlarging the federal budget deficit, raising tariffs, and restricting immigration. The iShares TIPS Bond ETF (NYSE:TIP) saw a rise in premarket trading amid these inflation concerns.
June 03, 2024 | 9:48 am
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The iShares TIPS Bond ETF (NYSE:TIP), which tracks inflation-protected U.S. Treasury bonds, rose in premarket trading as Larry Summers warned of potential inflationary pressures under a Trump re-election.
Summers' warning about inflationary pressures under Trump's potential re-election has likely increased investor interest in inflation-protected securities, leading to a rise in the iShares TIPS Bond ETF.
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