Forget tacos, can Trump have his tariff cake and eat it too? Wall Street’s biggest bull thinks so

• If President Donald Tariffs of Trump Setting up about 10%, the federal reserve can still be allowed to cut rates later this year as they possess the courtofer of the budge, thinking that a debt of importers, corporations, corporations.

More talk now President Donald Trump and TacosBut another food to enter the conversation can be cake.

While his “day of liberty” announced the markets, he pulled a lot from his most aggressive principle since, even on Friday night he said Double Steel Tariffs by 50%.

General travel direction remains positive for Chris Harvey, Wells Fargo Securities’ head of equity strategy, whose price target is 7,007 makes him Largest Bull on Wall Street.

“Trump administration wants to keep things ahead,” He told CNBC on Fridayhours before the steel announcement. “They look like they want to push the ball ahead, and I think that’s positive. We’re here now at the point we start with real results in the next few weeks.”

Harvey added that he thought the stocks could jump in double-digit second half of the year. His S & P 500 forecast means a 18.5% drain from Friday close.

A significant piece of his thesis Fed Governor Governor Christopher Waller’sks Provement That if the tariffs finish about 10%, then the central bank will be in a position to cut rates in the second half of the year.

The inflationary tariffs usually appear and compel pigs to prevent finances. But if consumers pay attention to them as the price hike in a price flow and keep their higher terms subjected to inflation, then there can still be able to withdraw at low rates.

Today, the effective tariff rate remains more than 10%, even if the estimates differ. The budget lab in Yale put it on 17.8% last month, while It puts the Fitch at 13%.

Harvey expects tariffs to set up 10% -12% order and say that even clients express anxiety about all uncertainty, they are still comfortable with economic basics.

That prompts Scott Wapner in the CNBC to ask if Trump can do his cake and eat it too, leading his tariff agenda and holding his tariff route.

“I think,” Harvey replied. “So the reason why we say 10% with 10% of our mind is a third to eat import, a third to eat the consumer. That’s not a big effect.”

At the same time, he added that the tariffs would generate the income that helps the Federal Budget, who saw many shortcomings in recent years.

Fears that disadvantages are exponential under Trump’s proposed budget acting through Congress causing the borrowing costs as borrowing jitters like Treasury market

As trading talks continue, more important for Trump administration to reach Indian deals, European and European and China are less critical because China is not in the process of quitting from it.

But if the Tariff is uncertain in June and July, then companies can begin to change their payrolls and then “things begin to fall,” he warns.

So it is necessary to grow in trade and reach the deals with major economies such as India, Japan and EU, EU, EU, EU, EU, EU, EU, Harvey SE. In that way, markets can focus on the next year, nearest tariff effects.

“Then you can start to dismiss,” he explained. “Then the market begins to look at things. They start to see any kind of economic or weakness, and then we start watching ’26.”

This story originally shown Fortune.com

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