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The Trump Administration wants countries best offer by Wednesday in tariff talks. – Draft of Request.
Since the Saudi Arabia week where deals were aplenty and it started with the China/US reduction in tariffs, the promised deals have been 0 over the last 2-weeks despite promises for more deals from the likes of Hassett, Navarro and Trump himself.
I can hear him getting more frustrated as Japan, India are not closer. Steel tariffs of 50% are likely not to be helpful for Canada and Mexico. .
This article was written by Greg Michalowski at www.forexlive.com.
Dallas Fed President Lorie Logan said the current monetary policy setting is “well-positioned to to shifting risks. Speaking at a conference, Logan emphasized that Fed’s job is to prevent temporary price shocks, such as those from tariffs, from becoming an “ongoing persistent problem of inflation”. Logan highlighted that tariff-related inflation and broader policy uncertainty present […]
The post Fed’s Logan: Tariff-led price shocks must not become persistent inflation appeared first on Action Forex.
Looking at the details from the S&P global:
Headline PMI: 46.1 in May (up from 45.3 in April)
Below 50.0 for the 4th consecutive month → continued contraction
Production & Orders:
Output and new orders declined again; contractions remained steep
International demand especially weak; export orders fell more than domestic
Clients hesitant to place new orders due to tariff uncertainty
Inventories & Supply Chains:
Input and finished goods inventories cut further to reduce stock costs
Some firms dipped into inventories due to supplier delays
Vendor delivery times worsened again amid port congestion and customs delays
Prices & Inflation:
Input cost inflation accelerated, near March’s 31-month peak
Tariffs cited as key reason for higher input prices (e.g., livestock, metals, plastics)
Firms raised output prices, though the rate of increase was at a 3-month low
Employment & Capacity:
Job losses for 4th straight month; steepest since June 2020
Backlogs of orders declined but less sharply than in April
Spare capacity remains elevated
Purchasing Activity:
Purchasing volumes cut for 5th straight month (since January)
Contraction in buying reflects lower production needs
Business Sentiment:
Confidence remained subdued
Hopes for macro stability, but trade policy concerns dominate outlook
U.S. trade flows remain weak
Paul Smith,
Economics Director at S&P Global Market Intelligence
said:
“With manufacturers continuing to be hit by tariffs and
trade uncertainty, May saw the sector experience a
further significant contraction. Although declines were
softer than in April, both production and new orders
again fell to noticeable degrees amid reports that
market demand was weak – again largely because of
tariffs.
“Moreover, the hard to predict nature of trade policies
means the outlook for production remains extremely
uncertain and given the recent scale of the downturn
in the sector, job losses are mounting. Indeed, latest
data showed the steepest decline in employment since
the height of the COVID pandemic in 2020 with spare
capacity and rising costs also an increasing problem for
many firms.
“Unsurprisingly, tariffs remain the primary source of
price pressures, whilst also leading to an intensification
of supply side delays. No wonder firms therefore
remained circumspect in their purchasing and inventory
management decisions during May, with the survey again
revealing declines in both input buying and stocks.”
This article was written by Greg Michalowski at www.forexlive.com.
The US proposed nuclear deal with Iran
These things have ups and downs, but like the Russian memoradium from earlier today where Russia wants a smaller Ukrainiean army with less weapons, no international support and other restrictions that are likely not acceptable, this deal with Iran traditionally has not been something Iran will agree to. They may make deals, but they don’t last.
This article was written by Greg Michalowski at www.forexlive.com.
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