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Powell Preaches ‘Quantitative Normalizing’ | China Open to Minor Trade Concessions

Published October 9, 2019
  • Chairman Powell stated that the Federal Reserve Bank would resume treasury purchases in an effort to avoid a repeat of recent disorder in markets. Despite this, it was emphasized that though there will be a restart of the Fed expanding its balance sheet, it should not be viewed as a return to quantitative easing. He also hinted that policy makers are inching closer to cutting rates at the next meeting.
  • China is still open to reaching a partial trade deal with the US, as Beijing is signalling a focus on limiting trade war damage. China would apparently be open to accept a limited deal, as long as no additional tariffs are imposed by President Trump. In return, Beijing would offer non-core concessions like purchases of agricultural products such as soybeans.
  • Oil prices fell for a third consecutive day amid negotiations between Washington and Beijing. This comes ahead of the official resumption of talks between the world’s two largest oil consumers. A barrel of West Texas Intermediate crude was trading at $52.49 per barrel this morning.