Bassanese Bites: QE is coming – November 18 2019
Global markets are currently enjoying a “no news is good news period” – ever hopeful that a US-China trade deal will get done, and no news to the contrary is encouraging as it suggests both parties are still at least talking.
What we don’t want is President Trump flying off in a rage again – and jacking up tariffs – due to 11th hour haggling by the Chinese. But as I’ve discussed here previously, Trump seems less likely to do this now given growing signs that an extension of the trade dispute would put the US economy at risk as we head into the 2020 Presidential election year.
Of course, even in this worst case scenario Fed chair Powell reminded us last week that he stands ready to lend further policy support if need be. In other words, though the Fed is now on hold, it retains an “easing bias”.
