Trump is becoming more and more enemy compared to China, a risky game
Trump is becoming more and more enemy compared to China, a risky game
In the past few weeks, President Donald Trump has had some successes despite widespread concerns that the trade conflict could put on the American economy. Inflation is constantly falling, the jobs are still numerous and there are increasing signs that the economy could boom in this quarter.troubling trade rhetoric
In view of these positive economic developments, Trump's increasingly aggressive rhetoric was particularly worrying last week, especially before his the Chinese leader Xi Jinping . The economic situation under Trump currently seems to be going well, but the economic framework of his administration is based on numerous economic reservations and unproven theories. A renewed escalation of the trade conflicts with the second largest economy in the world could collect this scaffolding.important turning point in the trade war
On May 12th, a decisive Wendpunkt in the global trade war. Delegates from China and the USA announced that they significantly reduce their historically high tariffs. The markets reacted delighted and Wall Street reduced their recession forecasts. The long -term consumer confidence also recovered significantly.
Current economic indicators
The current economic reports have proven to be surprisingly robust. According to the consumer price index, consumer prices in April have just 2,3% this month in 2.1%, according to the separate price index for personal consumption editions. The Federal Reserve is considering this report if it thinks about changing interest rates. The aim of the Fed is an inflation rate of 2%, which means that America finally gets closer to this long -term goal after years of historically high price increases.
rising tensions with China
The tensions between Trump and China have increased in the past few weeks because Trump accuses China of not complying with the commitments given in May. Both countries have installed mechanisms to prevent the commercial conflicts from escalating again, but the mood remains tense. accused China of the "complete violation of his agreement". These constant tensions cover the risk of the economic situation deteriorated drastically.
concern about the future of business
economic experts, analysts of Wall Street and managing director raise the alarm over the trade war and fear a toxic combination of rising prices and slower economic growth. A recently published report showed that the layoffs rose by almost 200,000 to 1.786 million in April and that the first unemployment applications rose to 247,000 - much more than estimated. In addition, Challenger, Gray & Christmas of 94,000 layoffs in May report, which represents an increase of 47% compared to the previous year. These warning signs indicate that the good news situation could quickly turn into negative, especially if the trade conflicts escalate.
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