FOMC redline. Only notable change is mention of rising "risks of higher unemployment and higher inflation." Also mention of "swings in net exports" which however are dismissed as "economic activity has continued to expand at a solid pace" https://x.com/zerohedge/status/1920178672532680713
Reading between the lines here's what Powell said. We're in a lot of trouble. The economy is weak and getting weaker, but the Fed can't cut rates as inflation is getting stronger. In fact, we should be hiking rates, but we can't do that either without creating a financial crisis. https://x.com/PeterSchiff/status/1920199460698591298
It was a crazy FOMC day with high volatility in both directions. Late in the day the futures exploded higher on news that Trump is going to rollback a Biden era export restriction for semiconductors. It's important to remember that since that rule was put in place, China has put import restrictions on Nvidia. https://x.com/SuburbanDrone/status/1920209576764518582
* Fed kept rates on hold and flags rising risk of higher inflation, slower growth aka Stagflation
* Trump says not open to pulling back China tariffs [talking tough before even talks begin]- typical Trump flip-flop, he may not have remember what he said earlier
CITI: U.S.-CHINA TRADE WAR MAY EASE, BUT ROAD AHEAD IS TOUGH Citi analysts say both sides have reason to de-escalate, but progress will be slow and uneven. Some tariffs may be lifted in the next six months to open broader talks
Fentanyl Tariffs (20%) – Easiest to remove; Beijing may address U.S. concerns.
Escalatory Tariffs (91%) – Likely to be rolled back soon to build goodwill.
Reciprocal Tariffs (34%) – Hardest to unwind; tied to U.S. manufacturing goals and China's industrial policy.
Citi sees a sustainable trade deal needing 20–25% tariffs, but real progress may not come until after the U.S. midterms. https://x.com/DeItaone/status/1920089600703254974
