Deutsche Bank Cautions About Upcoming Tariff and Employment Disruptions

Market Performance and Risks: The U.S. stock market has seen a significant rise, with the S&P 500 up nearly 9%, but Deutsche Bank warns of potential challenges ahead due to increasing tariffs and a tightening labor market.

Impact of Tariffs and Labor Shortages: Deutsche Bank's George Saravelos highlights that tariffs could rise to 15-20%, impacting U.S. households and businesses, while a slowdown in immigration and the expiration of work programs may remove over 700,000 workers from the labor force, complicating the Federal Reserve's economic management.