Fed Chair Powell said yesterday that the Fed is 'strongly committed' to 2% inflation goal, a sign that rates are likely to hold steady for a while. It also indicates that the China-Us trade war did not pop up the CPI too much as people used to fear. Plus the earning numbers showed that more than 70% US companies have met or beaten expectations in the last quarter... All these signals would definitely give Trump more confidence in the ongoing negotiation with China.
Although China representatives have tried to invite the counter partners back to negotiation table twice in the past week, it is believed that the White House has already set its time table to settle the so called 1st phase deal next year. So, here come the question, what will happen to the tariff originally dated in Dec. 15th? Will it be postponed again?
As Trump said several times in public. China wants this deal more than he does, and they are not making enough effort... So there's good reason to believe that the Dec. 15th tariff will probably be triggered if nothing else happen before that date.
Is there going to be a correction by then? How big is it going to be? Is it going to be a good chance to get on board?
We will see.
