President Trump’s reaction to what Fed Chair Powell said yesterday.
"‘termination cannot come fast enough"
‼️ Will we get a "shadow Fed chair" as soon as this Fall ?
On Monday, Treasury Secretary Scott Bessent has indicated that the discussion for the next Federal Reserve Chair could take place sometime in the fall. ➡️It now looks very clear that Powell's term ends in May 2026. Trump will not reappoint him. ➡️Will Trump fire him? This is very messy (and unknown legally). The alternative, proposed last year by Scott Bessent, was to create a "shadow Fed Chairman." 🔴 How will the Trump administration use a "shadow Fed Chariman"? 1) They appoint Powell's replacement months earlier. 2) They send the nominee regularly go on financial TV, tweet, etc., giving his/her personal opinion and criticising Powell views and decisions, thereby undermining his authority. The shadow Fed Chair could be nominated as soon as this fall...
🚨BREAKING: TARIFF NEWS
State companies exporting from China face UP TO 245% Tariffs *Except if you are Apple $AAPL Source: @realDonaldTrump
China on Wednesday appointed Li Chenggang as vice minister of commerce and a top representative for international trade negotiation, according to an official statement, replacing Wang Shouwen.
The appointment makes Li a key member of China’s trade negotiation team as Beijing deals with trade disputes with the U.S. So far, there have not been any sign of near-term trade talks as both sides have ratcheted up tariff tensions. Source: CNBC
In case you missed it...
The NY Empire State Manufacturing Survey 6-month Ordering Intentions fell to the LOWEST READING IN THE HISTORY OF THE INDEX! Source: Ronnie Stoeferle @RonStoeferle @kevinmuir, Bloomberg
JUST IN 🚨: S&P 500 forms Death Cross ☠️ for the first time since March 2022
Source: Barchart
Extreme anti-US sentiment or just the start of a trend?
Source: Barchart
Donald Trump signalled he may offer carmakers some relief from tariffs, in the latest sign the US president will offer carve-outs to selected industries.
Trump said he was “looking at something to help car companies” that were making vehicles in North America. “They’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time, because they’re going to make them here,” Trump said from the Oval Office on Monday. His remarks came after the administration at the weekend exempted smartphones, laptops and other consumer electronic goods from steep “reciprocal” tariffs, although US officials later said those items could be caught in a later round of levies. Trump unveiled steep tariffs of 25 per cent on imports of cars and parts last month, in a move that threatens to push up costs for American consumers and upend global auto supply chains. Under the trading regime, cars and parts made in Canada and Mexico face lower levies and only attract the 25 per cent tariff on their non-US content if they otherwise comply with the rules of the 2020 USMCA trade agreement. Trump’s comments on Monday suggest he may offer carmakers more time to move supply chains to North America. Source: FT
