With all eyes on what Jerome Powell was going to say today at the Jackson Hole annual conference, the big news of the day turned out to be China‘s decision to retaliate against US tariffs starting in September, revealing that starting to tax about $ 78 billion of US imports with a tax level of between 5% and 10%.
Photo by Yaoyu Chen.
From Powell nothing new, the usual speech, that the Fed will do whatever it takes to keep up economic expansion and that risk management is part of the central bank’s decision-making process. Now, if the mixing of these two variables was not enough, soon after, it was Trump’s turn to come on the scene with two tweets that destroyed the feeling. He first asked who was the biggest enemy, the FED president or the president of China, and then insulted China, also saying that the US would be better off without the Asian country and ordering US companies to find alternatives to China.
A genuine disproportionate of aggressive rhetoric that has pushed Wall Street to the precipice of sales, what follows is an unknown. Will it go to Trump and the theme of trade war?
