Abandon your Christmas shopping cart, grab a cup of coffee, and sit on your favourite couch, because next week is bringing an abundance of market events, including three monetary policy reports by the Federal Reserve, the Bank of Japan, and the Reserve Bank of Australia. Without further ado, let’s take a look at what the fuss is all about.
Last Monday, US president Donald Trump and Russian president Vladimir Putin held a meeting in Helsinki, Finland. The meeting went great as far as Trump’s personal interests were concerned. For the people of the United States, it was a disaster.
Last Thursday, the Trump administration introduced a list of 10 percent tariffs on $200 billion in Chinese goods. It was also last Thursday, however, when Fed’s Powell gave a reassuring interview, stating that the US economy is still standing tall despite the inhospitable political climate. Here is what he had to say on the matter.
Last Friday marked the day when Trump’s administration imposed 25% tariffs on $34 million worth of Chinese exports to the US. Outraged by this decision, the country was quick to retaliate by dubbing Trump’s move as “the largest trade war in economic history” and promised reciprocal trade restrictions on US goods in the very near future.
On Thursday, the Commerce Department announced that they have adjusted their estimations of Q1 GDP growth from 2.2% for the previous month down to 2%, citing the weakest consumer spending performance in the US for the last 5 years.