March S&P 500 E-Mini futures (ESH25) are up +0.49%, and March Nasdaq 100 E-Mini futures (NQH25) are up +0.67% this morning as a report indicating the U.S. might take a gradual approach to hiking tariffs boosted sentiment, while investors awaited crucial producer inflation data and comments from Federal Reserve officials.
Bloomberg reported that members of President-elect Donald Trump’s incoming economic team are considering gradually increasing tariffs on a monthly basis. One proposal involves a schedule of graduated tariffs that would rise by approximately 2% to 5% each month, and would rely on executive authorities under the International Emergency Economic Powers Act, the report said. Such a plan may alleviate inflation worries and bring down elevated Treasury yields, giving the Fed room to lower interest rates this year.
