Treasury Secretary Steven Mnuchin indicates that there is a good conceptual trade agreement between China and the U.S. in regard to intellectual property protection and enforcement. Prior trade talks lead to positive progress on intellectual property protection and enforcement concerns. These trade talks are set to resume at high levels in October 2019. In a fresh interview with Fox Business, Treasury Secretary Steven Mnuchin conveys the main theme that both sides can reach a conceptual interim trade agreement on patent and trademark enforcement concerns. In the meantime, President Trump maintains the firm conviction that it would be important to impose heavy tariffs on Chinese imports if China cannot reach at least an interim fair trade deal.

Investor anxiety and other sentiment may manifest in the form of substantially more volatile asset price fluctuations across the U.S. and Asian asset markets for stocks, bonds, currencies, commodities, and so forth. As the People Bank of China (PBoC) governor Yi Gang is likely to join the October 2019 trade talks, the U.S. trade team expects to address the unfair trade tactic of PBoC renminbi currency manipulation. In summary, the supple-side school of economic thought prevails during the Trump administration with fair trade, fiscal stimulus, and intellectual property protection.