US Treasury bonds are losing their status as safe havens due to Trump's tariff policies — PineBridge

In the current global environment, PineBridge Investments expert Omar Slim prefers to hold cash instead of buying US Treasury bonds. He believes that Donald Trump's tough tariff policies will boost inflation and keep the Federal Reserve (Fed) in a state of uncertainty. Slim stresses that investors underestimate how much global trade relations and the US economy could change due to the new president's actions.

Analysts have been questioning the safety of such assets as US Treasuries for some time now. In the last quarter of 2024, the PineBridge expert managed to take profits from buying 5-year and 10-year Treasury bonds. Market conditions have now changed and Slim's choice falls on cash.

According to the analyst, the Fed will take a wait-and-see approach this year, assessing the need to cut interest rates to support the economy. On the other hand, the American central bank must keep the country's inflation rate in check.