Futures are off sharply as investors run the numbers on the effects of a 25% tariff on goods from Mexico and Canada.  As we’ve been warning, tariffs will positively ratchet up inflation which will, in turn, prevent the FOMC from cutting rates any time soon.

The one caveat: as equity markets tank, funds will of course flow from stocks into bonds – thus forcing interest rates lower as a fear trade. continued for members…

Futures are off their overnight lows, but are still back in the falling white channel.

Stay tuned.