While trading desks are scrambling to goalseek the Fed’s clearly hawkish statement into a dovish speech by Powell, in order to keep the Koolaid flowing at least a bit longer and stem today’s bloodletting, one potential catalyst that could send the dollar even higher is a confirmation from the WSJ of what Politico and we reported earlier today, namely that the Trump administration, deepening its global trade offensive, is set to levy tariffs on tens of billions of dollars of Chinese goods in the coming week, perhaps as early as Friday—a move that is likely to spark heavy retaliation from Beijing.
What the WSJ adds to what we already knew, is that Trump’s mind was already made up last week:
Senior trade officials in the White House, Commerce and Treasury departments, and the U.S. Trade Representative’s office met on the issue before President Donald Trump went to a summit of the Group of Seven industrialized nations in Canada on Friday, and agreed that the U.S. should move ahead with tariffs, said U.S. officials and others briefed on the talks.
While the odds are minimal, there is a chance that Trump will nix an escalation in the trade war: as the WSJ notes, “Trump still hasn’t given his final approval and could have second-thoughts about applying heavy pressure on China”, perhaps because:
The US is $19.9 trillion in debt — here’s who we owe the most
What happens to a nation that can’t manage its money and loves wars? The Unites States has a massive monetary debt to the world, with China being one of the countries we owe the most. The people continue to suffer at the failure of those they elect without knowing their history who it now is showing have robbed them blind. Trump draining the swamp?
Flashback to 1982: Bush padre about voodoo economics
America, built on lies creating wars for voodoo economics. Bush was right and joined right in and look who is laughing all the way to the bank? Who got rich closing American companies and putting them in China?
Cutting taxes for the rich and the change of freedom, justice, and liberty in the USA. How Reaganomics Destroyed The Middle Class…And Maybe America?
The National Debt went up under: Carter 41%, Reagan 186%, Bush Sr. 53%, Clinton 40%, Bush W. 77%. Do Republicans want to have the Chinese take over greater parts of America by skyrocketing our debt just to give the rich a new Mercedes every year with OUR MONEY?!? Trickle down doesn’t work. Bush was proof of that, having created less jobs than any President since Herbert Hoover. That’s right FDR created more jobs in his 1st term, before the WWII & during the Great Depression! Rich invest their money overseas, places like…China! Trumps in the White House now and so far not doing to bad compared to past administrations.