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US Shutdown Continues | Markets Soar as Powell Pledges Flexible Fed Policy
Published January 7, 2019
Another round of shutdown talks failed to break an impasse. President Donald Trump reiterated his demands for funding for a border wall, while newly empowered House Democrats stepped up the pressure on Trump and Republican lawmakers to reopen the government.
Markets surged after Federal Reserve Chairman Jerome Powell made comments that he will not resign if asked to do so by President Donald Trump, and he is prepared to be patient in deciding when to raise interest rates again.
US and Chinese officials have begun talks in Beijing. Optimism is mounting that they will find a way to finally break the impasse in their rancorous nine-month long dispute. The US is seeking concessions in Chinese business practices; in exchange, it will eliminate tariffs recently imposed on Chinese goods.
Oil prices rose in the early morning trade, supported by optimism that talks could soon resolve the trade war between the US and China, as well as OPEC production cuts and steadying equity markets. WTI crude prices have hit a high of $49.47.