Economic Preview: Trump puts China in the cross hairs, riles up Wall Street and backs the Fed into a corner

Washington used to be a quiet place in August and Wall Street took a siesta, but Donald Trump has changed all that. China is in the cross-hairs again, the Federal Reserve is under the gun — and investors are in a panic. See: MarketWatch economic calendar Let’s briefly review. The Federal Reserve cut interest rates…

Economic Preview: Trump puts China in the cross hairs, riles up Wall Street and backs the Fed into a corner

Washington used to be a quiet place in August and Wall Street took a siesta, but Donald Trump has changed all that. China is in the cross-hairs again, the Federal Reserve is under the gun — and investors are in a panic. See: MarketWatch economic calendar Let’s briefly review. The Federal Reserve cut interest rates last week largely because it’s worried about the fallout from the White House trade fight with China. Trump then upped the ante by threatening more tariffs, snuffing out a Wall Street rally that had pushed stocks to record highs at the end of July. The Dow Jones Industrial Average then plunged 767 points on Monday after Chine retaliated by letting the value of its currency decline. Now investors are banking on another Fed rate cut in September. Read: Trump threat to lift Chinese tariffs puts pressure on Fed to cut interest rates again The high drama overshadowed reports showing a surge in consumer confidence and another solid increase in new jobs in July that kept the unemployment rate near a 50-year low of 3.7%. By most measures, the U.S. economy is still doing pretty well. Read: U.S. adds 164,000 new jobs in
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