US economic growth slowing down, as trade war dented activities

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US economic growth slowing down, as trade war dented activities

On Wednesday, the 4th of September 2019, Federal Reserve had reported that the US economic growth was cooling down over the recent weeks, as latest exacerbation of Sino-US trade conflict had been pouring scorns over activities.

In point of fact, latest Fed remarks came a day after US manufacturing data had revealed its first contraction in more than three years, nonetheless, a strong labour market with 50-year low unemployment figures alongside robust consumer spending had been sending mixed signals to the financial markets Although, several US states had reported mass casualties on their finances following Trump’s China tariff hike, the Fed report published on Wednesday (Sept.

4th) ahead of a high-stake Federal Reserve meeting on September 17th and 18th, which was expected to initiate a hawkish rate-cut cycle to grapple with a sharp global slowdown, added that the US businesses would unlikely to face a recession anytime soon.

Nonetheless, on Wednesday (September 4th), US Central Bank altered its tone on US employment adding “modest” instead “strong” to describe the employment outlook. Besides, as United States had been bearing the burnt of China tariff war, expressing concerns over US factory activity on August, Federal Reserve’s Wednesday’s (Sept.

4th) report said, “Although concerns regarding tariffs and trade policy uncertainty continued, the majority of businesses remained optimistic about the near-term outlook”.