Powell hints the Fed will cut interest rates again as soon as next month

Credit: WorldNews- Published on August 23, 2019
Fed Chairman Jerome Powell hinted the Fed will cut rates again as soon as next month. He cited the US trade war with China and global turbulence ......
Advertisement

Credit: The Street
Published on August 23, 2019 -  01:10
Inside China's Latest $75 Billion Tariff Threat - How We Got Here
China is retaliating. China's announcement that it will impose tariffs on $75 billion worth of goods, with 25% tariffs on American automobiles set to go into effect December 15. Some of the other tariffs could go into effect on September 1. China wants to put 5% tariffs on U.S. crude oil and soybeans. Refresher In early August, President Trump threatened 10% to 25% tariffs on $300 billion worth of Chinese manufactured goods that would go into effect September 1.That would intensify a trade war that's already in full swing, with many U.S. companies already having noted in May how they plan to mitigate existing tariffs. Trump then pushed back the implementation date to December 15. Nonetheless, China has decided to match the White House on its desire to play hard ball on trade. U.S. Investors, afraid the economy is inching closer to recession on account of the trade conflict, have priced in more interest rate cuts from the Federal Reserve, with the S&P 500 still up 16% year-to-date, albeit falling Friday. The 10 year treasury bond is yielding a measly 1.6%. What to Watch Now Investors should take inventory of which goods are being taxed. China specified some goods, but it's not clear those are all the goods that would be at risk from tariffs. More importantly, this raises the question of whether the Federal Reserve will be more compelled to cut interest rates than it was Thursday before the news of China's retaliation. As Federal Reserve Chairman Jerome Powell speaks in Jackson Hole Wyoming Friday, investors will be listening to how much more dovish he will get, and then deciding over the weekend and next week what the net effect of more tariffs and more rate cuts will be on stocks. Premium Pick: Jim Cramer: Want Proof of Economy's Strength? Look to Home Depot Exclusive: CBD-Infused Happy Tea to IPO in January Cryptos: Bitcoin Is Still Nowhere Near Being Money Billionaire Club: Nepal's Only Billionaire Shares His Success Mantra Ask the Expert: Ask The Expert: Should You Add Gold to Your Portfolio? TheStreet Explains: The Benefits of Using a Credit Card Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud Catch Up: Today's Top News Videos Below

You are here

Recent related videos from verified sources

Federal Reserve Cuts Interest Rates But Holds Back 'Fire Power' 07:35
Credit: Cheddar Inc. - Published 5 days ago 


Fed cuts interest rates 01:41
Credit: Reuters Studio - Published 5 days ago 


What To Expect from Sept Fed Meeting 04:03
Credit: The Street - Published 6 days ago 


The Race to Zero: Why The Fed Will Cut, and Cut Again 01:20
Credit: The Street - Published 6 days ago 


Large Cap Banks' Outlook Weakening on Flat Yield Curve: Goldman Sachs Analysts 01:38
Credit: The Street - Published 6 days ago 


Jim Cramer Takes a Look Ahead to the Federal Reserve Meeting 01:27
Credit: The Street - Published 1 week ago 


Powell keeps Wall St. rate cut hopes intact 01:46
Credit: Reuters Studio - Published 2 weeks ago 


Jim Cramer on The Fed Cutting Rates 02:01
Credit: The Street - Published 2 weeks ago 


Gold's Next Run Will be "Explosive" Says Frank Giustra 03:11
Credit: The Street - Published 3 weeks ago 


S&P 500's Worst Month of the Year Is Here -- And Real Risks Not Vanishing Either 01:32
Credit: The Street - Published 3 weeks ago 


Recession Check: What Is the Yield Curve Telling Investors Now? 01:24
Credit: The Street - Published on August 28, 2019 


Fed divided on policy, discount rate votes show 00:50
Credit: Wochit Business - Published on August 27, 2019 


You might like