5/30/2019

BUSINESS/ECONOMY/TRADE WARS/TRUMP AS PRESIDENT: “Markets sank again Wednesday [5-30-19] partially on fear of political chaos after Robert Mueller’s statement put more pressure on House Democrats to begin impeachment hearings against President Trump but mostly on persistent worries about the impact of Trump’s trade wars on a softening economy. The bond market is once again flashing recession signals. The Dow is off nearly 1400 points, or around 5 percent, since China talks fell apart and Trump tweeted on May 5 about his plans to tax everything the U.S. imports from China at 25 percent. The Nasdaq is off nearly 8 percent since its May 3 high, very close to 10 percent correction territory. The S&P is down close to 6 percent since May 3. The numbers are not bad enough to force Trump back to the negotiating table. But they are getting there. Pressure on Fed again — Markets are starting to place serious pressure on the Fed to cut rates and Trump may not be far behind them. Per HFE’s Jim O’Sullivan, futures markets now expect over 30 basis points of Fed cuts by the end of this year and 75 basis points by the end of next year.”

Ben White, “Markets in trouble,” Politico, May 30, 2019 8:00 am