The past week has been a whirlwind of economic events, with President Donald Trump making headlines for his bold claims and controversial decisions. From touting a new trade agreement with the EU to launching a new round of tariffs, Trump’s actions have stirred up both support and criticism.
Meanwhile, the U.S. labor market has shown signs of cracking, adding fuel to the ongoing debate about the country’s economic health. Here’s a recap of the top stories from the past week.
Trump’s EU Trade Deal: A Big Win or Just Hot Air?
President Trump has been celebrating a new trade agreement with the EU, calling it “the biggest deal ever reached in any capacity.” However, critics are questioning the substance of this deal, with Ed Elson, co-host of the Prof G Markets podcast, suggesting that the agreement is merely a framework and subject to change.
Cracks In The Labor Market: A Threat To The Fed?
The U.S. labor market has shown signs of strain, with the July jobs report revealing a sharp hiring slowdown, a rise in unemployment, and significant downward revisions to past data. This reality check on Trump’s tariff-driven economic uncertainty has sparked concerns among investors and the White House.
See Also: Stock Market Outlook: July's Highs Mask A Dangerous August Twist
Economists Rally Behind Trump’s Call For Lower Interest Rates
Following a weak July jobs report and the largest downward 2-month revisions since 2020, economists and markets are aligning with President Trump’s call for lower interest rates. This shift comes just two days after Fed Chair Jerome Powell refused to pre-commit to a September rate cut.
Optimism For US-China Trade Deal Amid New Tariffs
Despite launching a new round of tariffs affecting dozens of countries, U.S. Treasury Secretary Scott Bessent expressed optimism about reaching a trade agreement with China. Bessent’s comments came after this week’s trade talks in Stockholm, which he believes have made meaningful progress toward a U.S.-China deal.
Trump Launches New Round Of Tariffs Amid Global Tensions
President Trump has imposed new tariffs on 69 countries, escalating global trade tensions and raising concerns over fentanyl, national security, and China. The new U.S. import duties range from 10% to 41%, with one of the most severe penalties aimed at Canada.
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This story was generated using Benzinga Neuro and edited by Ananya Gairola
Photo courtesy: Shutterstock
