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Trump pressures the Fed again



Given that a definitive trade agreement with China, and the end of the Trade War, is more complicated than ever (moreover, I see it impossible to realize this year), Trump heads his weapons to 'the real enemy at home', as said with those words: the Fed. 

Today, as he is now a reliable economist (its mention of "the crazy inverted yield curve" was really hilarious), "suggested" urgent decisions: a rate cut of 100 bps (!!)  and also a Quantitative easing. He does not ask little. I agree with him that their economy is the best in the world, but that fact must be endorsed with good economic policies, which I believe the Fed has been doing until today, without taking care the usual aggressive tweets from the President.






Is sure Powell knows he needs to steepen the yield curve and would lower rates next month (the 10-year T-Bond yield TNX is at historic lows, near 1.6%), but also he is evaluating the entire economic environment. The U.S. consumer sentiment of the economy is doing fine, as shown last Walmart WMT earnings (taking usually as a benchmark of U.S. consumer spending) and also the good Retail Sales numbers for July. In the other side, the industrial production isn't doing so well, as it last report shows. And now is a trending in the global economy (Japan and Eurozone mainly) the negative interest rates for the bonds, a crazy situation in which we are paying a bank for saving our money. 

Complicated panorama. So a good idea would be to check the Housing data this week (Existing Home Sales on Wednesday) and New Home Sales on Friday. This could clarify if the recession is really here or just in the yield curve inversion chart.



World economic calendar for this week, taken from econoday.com. 
FOMC Minutes and Housing reports would drive the markets.