Investors face uncertainty due to U.S. tariff situation

Ronald O'Hanley, CEO of State Street, highlighted growing uncertainty in the U.S. economy during an interview. He pointed out that this uncertainty stems from the ongoing U.S. tariff war and the effects of recent executive orders. O'Hanley noted that many investors, consumers, and businesses are feeling apprehensive, especially regarding the impact of tariffs. He explained that uncertainty often leads to reduced spending and investment, which can hinder economic growth. He emphasized the need for clarity from policymakers to help businesses navigate these challenges. O'Hanley mentioned that the U.S. economy still shows strong fundamentals, but consumer spending could decline if people become too worried. Additionally, he talked about rising cash holdings among investors, who are currently choosing to be cautious rather than make big investments. O'Hanley also discussed India's shift to faster trade settlements and the potential risks involved in such changes. When it comes to China, O'Hanley cautioned against writing off the country as a manufacturing power, despite its internal challenges. He believes that the outcomes of U.S.-China trade relations will have widespread implications for global markets.