2019-09-13 10:37:00 Fri ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
China allows its renminbi currency to slide below the key psychologically important threshold of 7-yuan per U.S. dollar. A currency dispute between the U.S. and China has brought the trade conflict between the G2 superpowers to new extremes. U.S. Treasury designates China a currency manipulator soon after the Chinese central bank lets renminbi slide to the symbolically important level of 7-yuan per U.S. dollar for the first time in 11 years. This strategic move represents another escalation as the Sino-U.S. trade relations continue to deteriorate in the meantime.
On the one hand, this recent renminbi depreciation renders Chinese export prices more competitive and so can contribute to better trade-driven economic prospects. On the other hand, the renminbi depreciation inevitably exacerbates the monetary severity of 25% tariffs on $250 billion Chinese imports. This renminbi depreciation serves as a flexible countermeasure to the 10% Trump tariff on all the other $300 billion Chinese imports, and most U.S. stock market indices decline substantially 3%-5% in response to the bilateral tense trifecta of tech, trade, and currency. U.S. Treasury Secretary Steven Mnuchin indicates that the Trump administration can engage with the IMF, WTO, and World Bank to deter unfair trade competition from China.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2026-07-01 11:29:00 Wednesday ET
In recent years, higher American economic growth has been impressive both by historical standards and in comparison to the rest of the world. American excep
2019-10-07 12:35:00 Monday ET
Federal Reserve reduces the interest rate by another key quarter point to the target range of 1.75%-2% in September 2019. In accordance with the Federal Res
2018-11-15 12:35:00 Thursday ET
Warren Buffett approves Berkshire Hathaway to implement new meaningful stock repurchases. Buffett sends a positive signal to the stock market with the Berks
2019-03-31 11:40:00 Sunday ET
AYA Analytica free finbuzz podcast channel on YouTube March 2019 In this podcast, we discuss several topical issues as of March 2019: (1) Sargent-Wallac
2018-02-11 07:30:00 Sunday ET
President Trump unveils his ambitious $1.5 trillion public infrastructure plan. Trump proposes offering $100 billion in federal incentives to encourage stat
2022-02-15 14:41:00 Tuesday ET
Modern themes and insights in behavioral finance Lee, C.M., Shleifer, A., and Thaler, R.H. (1990). Anomalies: closed-end mutual funds. Journal