Reinhart Week in Review by Madison Investments 03.28.2025

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TARIFFS

This week, President Trump announced 25% tariffs on all auto imports. Tariffs on fully assembled autos are scheduled to start on April 3, while tariffs on auto parts will begin on May 3. Additionally, President Trump threatened Canada with bigger tariffs if Canada works with the EU to retaliate against U.S. interests. 

Our Take: There was very little market reaction to the announcements. Market participants have grown accustomed to “on again, off again” tariff threats and appear to be waiting for actual implementation before moving markets. That said, continued rhetoric surrounding potential tariffs has led to heightened economic uncertainty. 

 

INFLATION

The Personal Consumption Expenditures Price Index (PCE) rose 0.3% in February and is up 2.5% over the past twelve months. Core PCE (excluding food and energy) rose 0.4% and 2.8% respectively over the same periods.

Our Take: The story on inflation remains unchanged; progress toward the Fed’s 2% target appears to have slowed. The Fed is unlikely to change rates soon, especially given the uncertainty surrounding tariffs and their effect on inflation. The market is still pricing in two rate cuts in 2025, apparently believing that a slowing economy should cool price increases.

About Reinhart Fixed Income
“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

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Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.

This website is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security and is not investment advice.
Although the information in this report has been obtained from sources that the firm believes to be reliable, we do not guarantee its accuracy, and any such information may be incomplete or condensed. All opinions included in this report constitute the firm’s judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

Madison Investment Holdings, Inc. acquired the fixed income management assets of Reinhart Partners, Inc. on June 11, 2021 and now employs the Investment Team that previously managed the assets at Reinhart. The Investment Team manages the assets using substantially the same strategies and objectives as at Reinhart. Performance information dated prior to the purchase reflects that of Reinhart Partners, Inc.

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