Fed Decision Day | US Considers Fresh Tariffs on China
Published August 1, 2018
The Federal Reserve will announce its latest monetary policy decision today, with the Federal Open Market Committee almost certain to hold rates unchanged. Today’s decision will not be followed by a press conference. Policy makers will be considering President Trump’s recent comments on the bank’s policy stance.
The Trump Administration is considering more than doubling the tariffs on $200 billion in Chinese imports from 10% to 25%. China responded by warning against “blackmailing and pressuring” by the US to force it back to the negotiating table.
The US and Mexico are in the final stages of negotiating a deal on rules for cars sold under NAFTA. The two sides have exchanged new proposals for the auto industry, with Mexican Economy Minister Ildefonso Guajardo scheduled to travel to Washington on Thursday for meetings with US Trade Representative Robert Lighthizer.
Brent and WTI crude futures are down over 1%, breaking below $73.02 and $67.88, respectively. One of the reasons for soft oil prices was due to yesterday’s API crude oil inventory report, which displayed a surprise build in crude stocks of 5.6 million bpd instead of the expected 2.8 million bpd.