On Tuesday, the 7th of August 2019, US President Donald Trump softened his tone over a protracted trade war with China, which worsened further over the recent weeks after Trump’s new China tariff on $300 billion of Chinese imports, while as an attempt to curb some concerns of an escapated Sino-US trade spat, US President Donald Trump had brushed aside concerns of a full-blown economic war with China.
Despite Trump’s soothing comments, Beijing appears to remain unconvinced after China was labelled as a currency manipulator for the first time since 1994, while a top government official of China had been quoted saying following Trump’s tout aimed at putting a pause at downslope momentum of financial markets across the United States, that, Washington’s decision to label China as a currency manipulator would lead to a chaos and heighten death tolls in the financial markets across the globe.
While latest comments of Trump, a businessmen’s favorite, were widely contemplated as a move aimed at heading off heeding trade upheavals and easing sentiments in the US markets which had been eviscerated roughly 7 percent after last Wednesday (July 31st) Fed rate cut, echoing Trump’s lead, St.
Louis Fed President Bullard said at a National Economists Club Luncheon, “I think of trade regime uncertainty as simply being high in the current environment. I do not expect this uncertainty to dissipate in the quarters and years ahead. ”