Six years ago, almost to the day, there was an ebb and flow of U.S./China trade negotiations. The Fed was stubbornly holding rates high in the face of falling (sub 2%) inflation with a monetary policy meeting approaching. The U.S. was executing a "maximum pressure" campaign on Iran.
SEE MOREU.S./China trade talks went into a third day today.Mr.Bessent, the lead U.S. negotiator, was back in the U.S. testifying on Capitol Hill about the budget. On China, he called the negotiations "successful." And he said he was "confident" that the negotiations will bring balance to the ''Economic Relationship''.
SEE MOREFor the Fed,to show more of the same: tame inflation.The inflation data has become less important than the inflation threat of Tariffs. their Data-Dependent, until it doesn't fit their preferred Policy stance.
SEE MOREThe Manner expantiated yesterday of the three big developments that have taken place over the past several days. Among them, the breakdown of the deal behind the U.S./China 90-day tariff reduction, and the resulting Potential for a return to an effective embargo Trade with China. Mr.Trump and Mr.Xi shook the Waves with "TRADE DEAL" Communication.
SEE MOREOver a weekend in early May, there was a de-escalation with China in the form of a 90-day tariff reduction. That catalyst has returned stocks to positive territory for the year, And for the best May performance since 1990. But, over the past several days, both the U.S. and China have accused each other of violating the trade deal.
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