This Week vs. the Fed
This is the week that actually matters.
Nine days ago Trump said he’d stop trading with any country the U.S. runs a deficit against if the Fed doesn’t cut rates.
Wednesday we get the September decision.
Markets are now pricing a hike, not a cut. That would mean Chair Warsh - the person
Trump put in the job a few months ago - is about to do the opposite of what the President just demanded.
If the market is right and Trump follows through, a large chunk of U.S. trade gets taken off the table. Think Mexico, China, Taiwan, Germany, Japan, South Korea, Canada, India. That’s roughly half the partner list.
Worth paying attention to how this one lands.
