Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
The final week of August could be highly volatile as markets fret over the economy and the latest developments in trade wars.Market Insiderread more
Federal Reserve Vice Chair Richard Clarida said Friday that the global economy has deteriorated in the past month.Marketsread more
The latest escalation in the trade war ups the odds the economy will fall into recession and that the Fed will aggressively cut rates.Market Insiderread more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
"We don't need China and, frankly, would be far better off without them," Trump tweeted.Politicsread more
Recent trade friction between the two Asian powerhouses has morphed into a dispute with political implications that go far beyond the region.Asia Politicsread more
"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" Trump wrote amid a series of tweets that rattled markets Friday.Politicsread more
In prepared remarks to Congress, Yellen reiterated statements that Fed Governor Lael Brainard gave Tuesday, namely that rates are close to a "neutral" level and not in need of a significant move higher.
The neutral level is the point where the Fed's benchmark rate is neither accelerating nor restraining the economy. The current target for the funds rate is 1 percent to 1.25 percent, while inflation is around 1.4 percent. That puts the real rate close to zero, where Yellen and her dovish allies on the Federal Open Market Committee believe it needs to be.
"Because the neutral rate is currently quite low by historical standards, the federal funds rate would not have to rise all that much further to get to a neutral policy stance," Yellen will tell Congress.
Government bond yields fell on the news as did the dollar. However, U.S. stock futures jumped as traders figured a slower Fed could give the bull market another push higher.
Yellen conceded that the Fed still likely will need to implement "gradual rate hikes" over "the next few years," but markets took her statement to mean that the central bank position could be more dovish than anticipated.
Markets currently assign just about a 50 percent chance that the Fed will approve another interest rate hike this year. The anticipation is that the FOMC will start reducing the $4.5 trillion balance sheet containing bonds the Fed has bought to stimulate the economy, then possibly do one more rate increase before the year ends.
However, the Fed's efforts to normalize policy from its historically accommodative position has been constrained by low inflation. Yellen said the committee will be "monitoring inflation developments closely" and base policy accordingly.