Renowned economist Nouriel Roubini, nicknamed “Dr. Doom” for his pessimistic but often accurate predictions, warned Monday that financial markets are mistaken about the Federal Reserve’s willingness to step in amid escalating trade tensions.
What Happened: “Markets have been delusional that Powell put strike price is above Trump’s put strike price. It is NOT!” Roubini wrote on X, referring to the price level at which the Fed would intervene to stabilize markets.
The Turkish-born American economist described a “three-way game of chicken” between President Donald Trump, Federal Reserve Chair Jerome Powell, and Chinese President Xi Jinping, with each waiting for the others to concede first.
The comments come as markets grapple with Trump’s tariff threats against China, including a potential 50% duty if Beijing doesn’t withdraw its recent 34% tariff on American products by Apr. 8. China’s Commerce Ministry has vowed to “fight …