Could Donald Trump’s action lead to a Economic downfall for the American economy which would accurate China’s taking over from America as the world’s biggest Economy?
Trade has been the engine for mankind for centuries….
Could Donald Trump’s lasting memory be of how he fucked so big he dragged the world’s economic well being into a hole?
Could 2021 feature a new Democratic President doing a repeat of President Obama’s rescue of the American economy?
The Federal Reserve is poised to raise interest rates Wednesday for the third time this year as the economy powers ahead, but beyond that the central bank’s outlook has been thrown into confusion by President Donald Trump’s trade battles.
For months, top Fed officials such as Chairman Jerome Powell have downplayed the impact of Trump’s escalating trade disputes on the broader economy.
But now, the president has imposed tariffs on $200 billion more in Chinese goods and threatened to penalize another $267 billion — moves that will essentially cover all U.S. imports from the world’s second-largest economy. Beijing has responded with duties of its own on billions of dollars in U.S. goods.
That has stoked concern that a prolonged and expanding trade fight could slow growth while also pushing up prices.
“This is not just a threat,” said Lindsey Piegza, chief economist at Stifel Fixed Income. “This is going to change the pathway for the U.S. economy.”
The U.S. is also threatening to move forward with a new NAFTA deal that excludes Canada if negotiations with Ottawa are unsuccessful — Sept. 30 is the current informal deadline. And the Trump administration has already slapped global tariffs on washing machines, solar products, steel and aluminum.
Even more duties may loom on automotive imports to the U.S., an event that analysts speculate could finally spook financial markets, which have largely shrugged off Trump’s trade skirmishes so far.
It’s still too early to predict the ultimate impact of U.S. trade policies, but they are leading some businesses to hold off on investment in factories, equipment and workers. And if major companies begin to reorganize their global supply chains, it could reduce economic output.
“Trade is the single biggest risk factor in the growth outlook,”….