Just when you thought it was safe, "tariff man" makes a cameo.
"Brazil and Argentina have been presiding over a massive devaluation of their currencies which is not good for our farmers", Donald Trump said, in a pre-dawn tweet. "Therefore, effective immediately, I will restore the Tariffs on all Steel & Aluminum that is shipped into the US from those countries", he added.
Stocks immediately sank.
Naturally, Trump took the opportunity to lambast the Fed.
"The Federal Reserve should likewise act so that countries, of which there are many, no longer take advantage of our strong dollar by further devaluing their currencies", the president screeched. " This makes it very hard for our manufactures & farmers to fairly export their goods".
Recent economic data suggests the US economy is holding up reasonably well, a state of affairs which, absent further trade banter, would likely harden policymakers' resolve when it comes to staying on hold in the interest of preserving the "mid-cycle adjustment" characterization of the three rate cuts delivered since July.
But Trump has consistently used trade escalations as a way of engineering looser Fed policy. Earlier this year, it se
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