The US economy showed a neutral-to-slower growth compared to previous estimations but continued at solid pace in the second quarter of the year amid the Trump White House’s trade war with China and battles with other major economic blocs.
Solid growth in the US
The US Commerce Department on Thursday reported that the country’s gross domestic product, rose by 2% in the period from April to June. Consumer spending remained one of the brightest spots in the economy as it rose to a vigorous pace of 4.7% growth in Q2, the fastest since 2014.
President Donald Trump praised the economy as “doing GREAT, with tremendous upside potential!” But he went on to blame the Federal Reserve for downside effects and risks. “If the Fed would do what they should, we are a Rocket upward!” he tweeted.
A recipe to combat self-induced injuries?
The Trump administration was studying a proposal that would see taxes on American citizens lowered by the same amount it takes in from tariffs on Chinese goods as the trade war between the world’s two largest economies continue to put pressure on American producers and consumers.
The idea was put forward by the Florida Republican Senator Rick Scott, the Washington Post reported on Thursday, adding that he had talked with White House officials, including Larry Kudlow. The proposal needs congressional approval as Washington has imposed fresh 5-percent extra tariffs on hundreds of billions of dollars-worth Chinese goods from September 1 and October 15.
Beijing and Washington gave signs on Thursday that they will resume trade negotiations in September, raising hopes for an eventual resolution to the tariff war they wage.
Dorian is coming to Florida this weekend, oil traders brace
Florida is bracing for a hurricane on Friday that is threatening to hit the state over the Labor Day weekend. The hurricane named Dorian is gaining power as it gets closer to the land. Oil-producing region in the Gulf of Mexico west of Florida seems to out of harm’s way for now.
Italy somewhere near a government
Italian President Sergio Mattarella granted mandate on Thursday to Giuseppe Conte to form a government between the anti-establishment 5-Star movement and the center-left Democratic party (PD, after the two sides successfully outcast the right-wing leader of the League Party, Matteo Salvini who brought about the current crisis in the first place, hoping to become the PM himself.