The escalation of U.S.-China trade relations and the announcement of new tariffs are causing noticeable changes in the economy and cryptocurrencies.
Impact of Tariffs on American Consumers
Following recent meetings between representatives from the U.S. and China, the International Monetary Fund noted that tariffs would significantly impact American consumers in the remaining months of the year. Ongoing inflation trends may lead to the Federal Reserve maintaining interest rates.
Expectations Regarding Interest Rates
Federal Reserve Chair Jerome Powell is expected to comment soon, emphasizing that, "If inflation does not continue to decline, we should refrain from cutting rates." This could postpone any interest rate reductions, potentially impacting the valuations of cryptocurrencies.
U.S.-China Tariff Negotiations
China's Chief Trade Negotiator Li expressed optimism regarding dialogue between the two countries. He mentioned that both sides "reviewed the implementation of the Geneva agreement and engaged in comprehensive economic discussions" and showed a desire to extend the suspension of reciprocal tariffs. U.S. Trade Representative Greer also noted discussions regarding specifics of tariff suspensions and improvements in supply chains for U.S. companies.
The situation regarding tariffs remains critical, with the U.S. likely to face various changes depending on the outcomes of discussions in the coming months. Both nations are showing a commitment to further dialogue, although the path to resolution may still be complex.
