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Trump Golden Economy: lowest unemployment, 3% growth , China buying 1,2 trillion dollars goods

The economy under the Crusader in Chief

  • Defeated China economically

    Votes: 6 54.5%
  • Reduce Taxes and Regulation

    Votes: 6 54.5%
  • Made America the biggest energy producer in the world

    Votes: 6 54.5%
  • Reduced unemployment to historical figures including for minorities

    Votes: 6 54.5%
  • Reached historical 3 percent growth

    Votes: 6 54.5%
  • Created 600,000 manufacturing jobs

    Votes: 6 54.5%
  • Most of the achievements due to Hussein Obama

    Votes: 5 45.5%
  • Taxes cuts mainly for the rich

    Votes: 5 45.5%
  • Environment will be destroyed and global warming is a major problem

    Votes: 4 36.4%
  • Social inequality and race inequality continues

    Votes: 5 45.5%
  • The new trade deal with Canada and Mexico is NAFTA

    Votes: 6 54.5%
  • Deficit is expanding and debts are rising

    Votes: 8 72.7%
  • Economic slowdown is coming

    Votes: 5 45.5%
  • Recession is coming

    Votes: 5 45.5%

  • Total voters
    11
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  • Thawra # Furoshima

    Thawra # Furoshima

    Well-Known Member
    The Crusader in Chief
    550 billion dollars tariff on China
    The Chosen Crusader


    August 24, 2019 - 05:36 AM EDTTrump spurs new wave of economic angst by escalating China fight
    Trump spurs new wave of economic angst by escalating China fight
    BY MORGAN CHALFANT AND BRETT SAMUELS 8TWEET SHARE MORE
    President Trump on Friday announced he would increase tariffs on more than $500 billion in Chinese goods, marking a new escalation in his trade war with China that has reverberated across the U.S. stock market and global economy.
    Trump unveiled his retaliatory measures on Twitter after the markets closed, capping a chaotic week throughout which the president vociferously downplayed speculation that a recession could be on the horizon.

    Both countries have engaged in a series of escalating actions in their trade dispute, with China announcing earlier Friday that it would impose new reciprocal tariffs on $75 billion in U.S. automotive parts, farm products and other goods.
    Trump, in turn, announced that $250 billion in Chinese goods he had intended to tax at 25 percent starting in September would now be taxed at 30 percent starting on October 1, while another $300 billion in goods being taxed at 10 percent would attract a 15 percent rate.
    “In the spirit of achieving Fair Trade, we must Balance this very unfair Trading Relationship. China should not have put new Tariffs on 75 BILLION DOLLARS of United States product,” Trump tweeted, writing that he believed Beijing’s tariffs were “politically motivated.”
    Trump earlier in the week declared he was the “chosen one” to take on China on trade, a remark he said later Friday was made sarcastically.
    But he triggered a drop in U.S. stock markets and stoked further concerns that the global economy could be headed for a recession after first responding to the China tariffs on Friday by saying American companies were “hereby ordered” to “find alternatives” to China. In doing so, he repeated his oft-used message that American firms should build their products in the United States.
    “We don’t need China,” Trump tweeted. “This is a GREAT opportunity for the United States.
    The president then spent part of Friday morning meeting with members of his economic team, and had lunch with Secretary of State Mike Pompeo. He remained largely silent on one of the most tumultuous days of his trade dispute with Beijing until announcing the tariffs in the early evening.
    Claude Barfield, an expert in international trade policy at the American Enterprise Institute (AEI), said in an interview that Trump can't "order" U.S. companies to stop doing business with China, calling the morning announcement “willfully ignorant.”
    Trump later tweeted that he was exploring using the Economic Powers Act. Under the 1977 law, Trump could declare a national emergency related to China in order to block U.S. firms from making some transactions in China.
    Barfield predicted the widening trade war would continue to create uncertainty around the U.S. economy, which could potentially fuel a slowdown or a recession in the next six to 12 months.
    “That’s not something that’s just psychological, it goes back into the board rooms in the sense that people, corporations can’t plan," Barifeld said.
    The Dow Jones Industrial Average lost 2.4 percent on Friday, the S&P 500 dropped 2.6 percent and the Nasdaq fell 3 percent.
    Trump has been banking his reelection on stronger economic growth, and the White House has been resistant to acknowledging that a downturn is possible, citing improved consumer confidence and low unemployment numbers.
    The president’s allies insisted amid the chaos Friday that Trump’s strategy would win out in the long-run.
    “The big picture here in terms of the macroeconomic effects is that we’ve had tariffs in place for over a year,” Peter Navarro, a trade adviser to Trump and fierce China critic, said on Fox News. “We know that China is bearing the burden of those tariffs by having to cut their prices…and we have seen absolutely no impact on consumers.
    “So the people of this country, Capitol Hill, they’re behind President Donald J. Trump with his tough stand on China,” he added.
    The president has made his trade war with China a central focus of his first term. The administration first levied tariffs more than a year ago in the face of congressional opposition. The dispute has since seen each side impose additional duties on the other, with negotiations between top officials taking place intermittently.
    The two countries appeared close to a deal earlier this year before talks broke down. Trump has since taken a less urgent approach to coming to a final agreement, and there are few signs of a resolution in sight.
    But Trump’s self-style image as a master negotiator and his constant promises to improve U.S. trade deals has raised expectations for him to get something out of the lengthy feud with Beijing.
    “In the end, he has to choose between accepting an agreement that’s weaker than he wants or continuing the war. And I think both open him to criticism,” said Bill Reinsch, who spent 15 years as a member of the U.S.-China Economic and Security Review Commission.
    Trump's tweets about the economy and China on Friday came before he departed Washington for the annual Group of 7 (G-7) summit in Biarritz, France. The global economy and trade are poised to be at the top of the agenda, and Trump is likely to express gripes to European partners about what he views as unfair trade practices.
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    The president also again criticized Federal Reserve Chairman Jerome Powell, suggesting he was an “enemy” of the United States. Trump frequently cites Powell in his tweets, castigating him for keeping interest rates high.
    In a speech Friday morning at the Fed’s annual gathering at Jackson Hole, Powell signaled that the central bank was doing its best to steer U.S. monetary policy even in the face of an uncertain trade strategy.
    “While monetary policy is a powerful tool that works to support consumer spending, business investment, and public confidence, it cannot provide a settled rulebook for international trade,” Powell said in prepared remarks. “We can, however, try to look through what may be passing events, focus on how trade developments are affecting the outlook, and adjust policy to promote our objectives.”
     
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    Well-Known Member
    FINANCE
    August 27, 2019 - 01:21 PM EDT
    Trump blames Fed for manufacturing slowdown

    BY NIV ELIS 1,594
    TWEET SHARE MORE

    Next Up
    00:25
    00:31

    President Trump on Tuesday blamed the Federal Reserve for a recent slowdown in manufacturing, a key sector he promised to revive as a candidate.

    "The Federal Reserve loves watching our manufacturers struggle with their exports to the benefit of other parts of the world," he tweeted. "Our Fed has been calling it wrong for too long!"

    The manufacturing sector's output has shrunk for two consecutive quarters, meeting the widely accepted definition of a recession. It has been among the hardest-hit sectors from Trump's escalating trade war with China.

    The decline could complicate Trump's reelection bid. Manufacturing plays an outsize roll in key states such as Pennsylvania, Wisconsin and Michigan, which helped hand Trump the White House when they flipped in the 2016 election.

    Last week, Trump said he would increase tariffs on Chinese imports from 25 percent to 30 percent, and raise the rates on new tariffs scheduled to go into effect in September and December from 10 percent to 15 percent.

    The move followed China's announcement that it would retaliate with its own tariffs on $75 billion of American goods, such as cars and agriculture.

    Trump has since said that he thinks the chances of inking a trade deal with China are good, though Chinese officials denied his claim that high-level phone calls took place over the weekend on the issue.

    Trump has frequently targeted the Federal Reserve, the independent body responsible for setting monetary policy and interest rates, as the cause of the country's economic woes. He has speculated about removing his hand-picked Federal Reserve chairman, Jerome Powell — a move critics say would violate the central bank's independence, long considered a key tenet of a functional financial system.

    In a speech last week, Powell said the Fed would act as necessary to combat a weakening economy and pointedly noted the trade war was a detrimental shock on the economy.

    "The global growth outlook has been deteriorating since the middle of last year. Trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States," he said.

    “While monetary policy is a powerful tool that works to support consumer spending, business investment and public confidence, it cannot provide a settled rulebook for international trade,” he added.

    Trump called Powell an "enemy," on Twitter, comparing him to Chinese President Xi Jinping.

    Economic growth has slowed in recent months and is expected to stall below 2 percent in the last two quarters of the year, well below the sustained 3 percent level the Trump administration has promised.

    A recent survey of economists found that roughly a third expect the economy to tip into recession in the coming year.
     
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    Well-Known Member
    Cheap Gas Revenue Up Consumers — and the U.S. Economy


    Provided by Dow Jones
    Aug 30, 2019 3:14 PM GMT+3

    By Dan Molinski
    Drivers hitting the road this Labor Day weekend will enjoy the cheapest gasoline prices in three years, a boon to consumers who have remained confident, while fears of recession grip much of Wall Street.

    Price-tracking firm GasBuddy predicts the national average for a regular gallon of gas will be $2.55 a gallon on Labor Day, down nearly 30 cents from last year and the lowest price on the holiday since 2016. The national average has fallen for six straight weeks to $2.58.

    "Oh, Lord, people love these prices," said Susan Begnell, a cashier at the Murphy USA gas station on Interstate 20 in Meridian, Miss. At $1.89 a gallon, her station currently is among the cheapest in the nation.

    Trade tensions, volatile markets and sliding business investment have all sparked worries of a looming economic downturn. A particularly gloomy signal: Yields on long-term U.S. government debt have fallen several times below those on shorter-term securities, which many investors believe is a recessionary signal.

    But consumers have been a counterpoint to the gloom.

    Consumer spending has remained on strong footing this year. Retail sales climbed in July, and Walmart Inc. reported this month that second-quarter sales rose. The labor market remains tight, and wage growth is solid.

    Low prices at the pump, brought about by recent oil prices that have remained between $50 and $60 a barrel, can further bolster consumer sentiment and spending. Cheap gas frees up household cash, especially for those at the lower rungs of the income ladder, to be used on other items.

    Robust spending, which is being partly fueled by low gasoline costs, "mitigates the risk of the downturn in manufacturing, trade and business investment spilling over into an outright recession," said Brian Coulton, chief economist at Fitch Ratings.

    Moribund oil prices themselves are a potentially positive sign as well. Since 1973, the U.S. hasn't had a recession that wasn't accompanied by a sharp run-up in oil prices, according to James Hamilton, an economics professor at the University of California, San Diego, and Dow Jones Market Data.

    Prof. Hamilton, who has studied the economic impact of oil-price shocks, has written that the sharp run-up in prices in 2007 and into 2008 contributed, along with the mortgage meltdown, to the 2007-2009 recession.

    In 2008, crude prices surpassed $140 a barrel, with gasoline in parts of the country topping $5 a gallon.

    If a sharp jump in oil prices occurs again, that could help tip the economy into a recession, Prof. Hamilton said. So far, though, that isn't the case.

    "There are some recession worries, but my reading is that those risks haven't shown up in any hard numbers for the U.S. economy," he said. "All the indicators are still fairly positive."

    Subdued oil prices have come at an important point for consumers. The time between Memorial Day and Labor Day -- when many Americans travel for vacation -- are crucial for the gasoline market.

    Should gas prices stay low in coming months, they could provide a further economic tailwind. The average U.S. household uses about 750 gallons of gasoline a year, according to an estimate from AAA, the automobile association. So a 27-cent-per-gallon drop -- the amount that the national average is predicted to fall this Labor Day versus last -- would save families about $202.50 a year, or $16.88 a month.

    While that amount might be inconsequential to some, economists say changes in gasoline prices also play a unique role in shaping consumer spending habits and sentiment.

    "With consumer sentiment, you have fundamental factors such as income and employment, but gasoline prices play this independent, separate role, " said Ben Herzon, executive director of IHS Markit's Macroeconomic Advisers.

    Low gas costs would also be key if tariffs on Chinese imports drive prices of other goods higher.

    Pump prices could fall even further. GasBuddy estimates some 10,000 stations could charge below $2 a gallon by Thanksgiving, noting that, during autumn, gas stations switch to a cheaper, winter-grade fuel. About two dozen gas stations already have sub-$2 prices, mostly in Southern states, including Alabama and Texas.

    Consumer sentiment could sour if tariffs are removed and oil prices soar.

    Another threat: hurricane season. In 2017, Hurricane Harvey caused the national gas average to jump 30 cents a gallon in a matter of days, according to AAA.

    Although the storm season this year has gotten off to a relatively slow start, the National Hurricane Center said it expects more activity in coming months, with Hurricane Dorian posing the most immediate threat.

    To receive our Markets newsletter every morning in your inbox, click here.

    Inyoung Hwang contributed to this article.

    Write to Dan Molinski at [email protected]
     
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    nternational

    China seen heading for economic growth below 6 pct


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    Bloomberg




    Economists are downgrading their forecasts for economic growth in China again, to below a level seen as necessary for the Communist Party to meet its own goals in time for its centenary in 2021. Oxford Economics, Bank of America Merrill Lynch, and Bloomberg Economics Tuesday all cut their forecasts for gross domestic product growth in 2020 to below 6 percent as a result of increasing risks from the tariff war with the U.S. In addition, Bank of America’s Helen Qiao and others are warning that the government’s current approach to stimulus is proving insufficient.

    China is refraining from cutting benchmark policy rates or pumping large volumes of cash into the economy even as growth slows to the weakest in almost three decades and the tariff escalation in August adds further headwinds. That’s endangering President Xi Jinping’s ability to claim China has reached a “moderately prosperous society” that has doubled 2010 GDP by next year, as a rate above 6 percent in 2019 and 2020 would be needed.
    Demand for credit has been weak, and while the policy easing since late last year has helped moderate the slowdown, the impact has been small, according to a report by Louis Kuijs, chief Asia economist at Oxford Economics in Hong Kong.
    With all the issues facing China, “more policy easing is needed to convincingly stabilize economic growth,” Kuijs said.
    China’s economic growth will likely slow to 5.7 percent in the last quarter of 2019 and remain broadly at that pace in 2020, Kuijs said.
    Output growth softened to 6.2 percent in the second quarter from a year earlier, close to the lower bound of the government’s full-year target of between 6 and 6.5 percent.

    Earliest indicators compiled by Bloomberg showed the economy slowed further in August.
    “We now expect China’s growth to slow to 6 percent this year and 5.6 percent next year. Our lower forecasts are subject to downside risks, given further threatened tariffs, and uncertainty over how the blow to business confidence from the trade war will play out.”
    Bank of America’s chief Greater China economist Helen Qiao said its 2020 forecast has been cut to 5.7 percent from 6.0 percent, and warned of the risk that policymakers were falling behind the curve on support to the economy.
    “The key reason for delayed policy response is policy agencies are waiting for the instruction from top decision-makers to shift policy stance towards easing,” Qiao wrote in a note.
    UBS Group AG sees stimulus coming in the form of more monetary easing, but expects policymakers to refrain from boosting the property market unless there’s a significant downturn. Wang Tao, chief China economist, now sees growth of 5.5 percent in 2020, after cutting the growth forecast Tuesday for the second time in less than a month, down from 6.1 percent in early August.
    “The risk of further escalation remains significant, which would put additional downward pressure on China’s growth,” Wang said, adding that she expected the People’s Bank of China to further reduce reserve ratios this year but hold off from adjusting the broader benchmark rate.​
     
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    Powell Says Fed Will Sustain Expansion, Reinforcing Rate-Cut Bet
    Catherine Bosley and Jan Dahinten
    Catherine Bosley and Jan Dahinten
    BloombergSeptember 6, 2019, 10:11 PM GMT+3

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here.
    Federal Reserve Chairman Jerome Powell said the most likely outlook for the U.S. and world economy is continued moderate growth. His comments cemented expectations for another quarter-percentage-point cut in interest rates later this month.
    “Our main expectation is not at all that there will be a recession,” either in the U.S. or the global economy, Powell said Friday in Zurich during a question-and-answer session in which he was joined by Swiss National Bank President Thomas Jordan.

    The Fed chief noted that the central bank is monitoring "significant risks," including global trade tensions, that could threaten this scenario. “We’re going to continue to watch all of these factors, and all the geopolitical things that are happening,” he said. “We’re going to continue to act as appropriate to sustain this expansion.”
    Powell’s remarks reinforced investors’ expectations for a quarter percentage-point cut when U.S. central bankers gather in Washington Sept. 17-18. They were also the last public words on policy from the Fed until the gathering: officials enter their pre-meeting blackout at midnight.
    Powell could have signaled he was open to a more dovish half-point rate cut, which some policy makers have sought -- and which President Donald Trump has loudly been calling for on Twitter. But he did not.
    “The U.S. economy has continued to perform well,” he said. “The most likely outlook for our economy remains a favorable one, with moderate growth, a strong labor market, and inflation moving back up close to our 2% goal.”
    U.S. stocks extended gains and Treasuries were mixed after Powell spoke, with the S&P 500 advancing to session highs. The dollar fell.
    Rate-cut expectations were also reinforced earlier Friday when the U.S. Labor Department reported employers added 130,000 new jobs in August, undershooting economists’ estimates.
    Powell said the labor market was in quite a strong position and described the latest data as “consistent” with that picture.
    For months, Powell and his Fed colleagues have warned that trade tensions and slower global growth represent mounting risks to the U.S. economy. To guard against those risks and to boost below-target inflation, the Fed cut rates by a quarter point in July in what Powell called a “mid-cycle adjustment” and “not the beginning of a long series of rate cuts.”
    In recent weeks, however, manufacturing data has suggested that ongoing trade disputes are causing not only uncertainty, but real damage to the U.S. economy.
    “There are significant risks and we’ve been monitoring those,” Powell said.
    Powell was also asked about a Bloomberg Opinion column published last week by former New York Fed chief Bill Dudley, which suggested that the Fed reject interest-rate cuts that would shield the economy from Trump’s trade policies, and help his prospects for re-election in 2020.
    “We serve all Americans regardless of their political party,” Powell said. “The idea that we would deviate from that is just simply wrong.”
    The chairman was asked about Facebook Inc.’s Libra crypto-currency plans. Powell said it could quickly become systemically important because of the huge scale of the social-media giant’s network. As a result, it would have to be “held to the highest” regulatory and supervisory standards.
    “It is not obvious to see how that would happen under our current regulatory system,” he said.
    (Updates with crypto-currency comments in final paragraph.)
    --With assistance from Christopher Condon, Fergal O'Brien, Reade Pickert and Scott Lanman.
    To contact the reporters on this story: Catherine Bosley in Zurich at [email protected];Jan Dahinten in Zurich at [email protected]
    To contact the editors responsible for this story: Margaret Collins at [email protected], Alister Bull, Ben Holland
     
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    Trump faces tough path to Fannie Mae, Freddie Mac overhaul
    Trump faces tough path to Fannie Mae, Freddie Mac overhaul
    BY SYLVAN LANE0TWEET SHARE MORE
    President Trump’s quest to revamp the federal housing finance system faces long odds, with Congress tied up with a slew of must-pass bills ahead of 2020 and the two parties sharply divided over how to address the issue.
    The administration’s first test comes Tuesday, when top officials will appear before the Senate to explain and defend their plan to end the federal government’s control over two pillars of the U.S. housing finance system.

    Lawmakers have struggled for more than a decade to release the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, better known as Fannie Mae and Freddie Mac, from Washington’s control.
    The two government-sponsored enterprises purchase mortgages from banks, package them into bonds and sell those bonds to help fund home loans for buyers in areas underserved by private firms.
    Industry critics of the system say it distorts lending markets and encourages risky mortgage loans with U.S. taxpayers as the backstop. Trump-appointed regulators have laid out a path to privatize Fannie and Freddie and have promised to act even if Congress doesn’t.
    Even so, much of the administration’s plan depends on lawmakers reaching agreements on some of the stickiest points of reforming a housing finance system forged during the financial crisis and frozen in amber since.
    While there is wide bipartisan agreement that federal housing policy is in dire need of reform, Congress lacks consensus with the 2020 presidential election approaching.
    “It is wildly optimistic to think that this Congress will act on any of the suggestions directed toward it,” wrote Thomas Wade, director of financial services policy at the American Action Forum, a right-leaning think tank.
    “These detailed and numerous recommendations represent a tall order for a divided Congress, particularly in the run-up to an election,” Wade added.
    The Trump administration’s push to complete what is often called the unfinished business of the 2007 to 2008 financial crisis comes amid a frantic time for Washington and the nation’s politics at large.
    Lawmakers already face looming deadlines to strike a government funding deal and reauthorize several crucial programs.
    Congress has less than a month to reach a government funding deal, which will require intense negotiations over immigration, border funding and other hot-button issues. Failure to do so could plunge the government into another federal shutdown this year, and just months before the first votes are cast in the Democratic presidential primary.
    Yet the Trump administration is still pushing for action on an ambitious, if open-ended, plan for housing finance reform.
    Treasury Secretary Steven Mnuchin, Housing and Urban Development Secretary Ben Carson and Federal Housing Finance Agency (FHFA) Director Mark Calabria will kick off that campaign Tuesday before the Senate Banking Committee.
    All of the administration’s legislative proposals would run through the banking panel, which has been the incubator and battleground for several failed attempts to free Fannie and Freddie from federal control.
    The committee’s most recent failed effort was a 2014 bill from the panel’s former chairman, retired Sen. Tim Johnson (D-S.D.), and Sen. Mike Crapo (R-Idaho), who took the committee gavel in 2015.
    The Johnson-Crapo bill was approved by the banking panel by a slim bipartisan margin, but it died in the full Senate under fire from both progressives and conservatives. Sen. Elizabeth Warren (D-Mass.), then an emerging progressive force and now a 2020 presidential candidate, helped rally Senate liberals against the bill, effectively dooming it in the then-Democratic-controlled Senate.
    Since then, the issue has only become more politically charged thanks to soaring U.S. rents and housing prices. Housing policy has been a central focus of several 2020 Democratic presidential campaigns, including Warren’s, who torched the Trump administration proposal in a Friday statement.
    Warren and other liberal critics have seized on the administration’s proposal to replace mandates to support affordable housing with a fee paid by Fannie and Freddie that would subsidize a taxpayer-funded backstop on certain home loans.
    “In the middle of a housing affordability crisis, when the gap between the Black and white homeownership rates is as big as it was when housing discrimination was legal, the Trump Administration wants to make it harder for creditworthy working families — especially families of color — to buy a home and build wealth,” said Warren. “That’s shameful.”
    While Warren may wield a louder megaphone thanks to the 2020 race, the opposition of Rep. Maxine Waters (D-Calif.) poses an even greater challenge for the administration’s plan.
    Waters, chairwoman of the House Financial Services Committee, has prioritized access to affordable housing and has condemned the Trump proposal as an “egregious” threat to low-income families.
    Without buy-in from Waters, a Senate-passed measure would see no action in the Democratic-controlled House. Democrats are already loath to give Trump a legislative victory before the 2020 election, and Waters is likely to prioritize her own proposals to fight homelessness over the White House wish list.
    Industry reform advocates are candid about the slim chances of passing a bill through a divided Congress ahead of an election, but they tout common ground on certain aspects of housing finance policy, like conservatorship and preserving the 30-year fixed rate mortgage.
    “It’s just not healthy or safe for the long-term interest of our economy to have this,” said former Obama FHFA Director Ed DeMarco, about government control of Fannie and Freddie. DeMarco now serves as president of the Housing Policy Group, a trade group representing mortgage lenders and servicers in Washington, D.C.

    Advocates, though, are keeping up pressure for action.
    “There’s a lot of common ground to start with in the foundation,” DeMarco continued.
    “What matters is if the leadership in both the committee and in the administration are ready to say, ‘OK, it’s time to actually drive to a better decision.’ ”
     
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    Legendary Member
    Trump faces tough path to Fannie Mae, Freddie Mac overhaul
    Trump faces tough path to Fannie Mae, Freddie Mac overhaul
    BY SYLVAN LANE0TWEET SHARE MORE
    President Trump’s quest to revamp the federal housing finance system faces long odds, with Congress tied up with a slew of must-pass bills ahead of 2020 and the two parties sharply divided over how to address the issue.
    The administration’s first test comes Tuesday, when top officials will appear before the Senate to explain and defend their plan to end the federal government’s control over two pillars of the U.S. housing finance system.

    Lawmakers have struggled for more than a decade to release the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, better known as Fannie Mae and Freddie Mac, from Washington’s control.
    The two government-sponsored enterprises purchase mortgages from banks, package them into bonds and sell those bonds to help fund home loans for buyers in areas underserved by private firms.
    Industry critics of the system say it distorts lending markets and encourages risky mortgage loans with U.S. taxpayers as the backstop. Trump-appointed regulators have laid out a path to privatize Fannie and Freddie and have promised to act even if Congress doesn’t.
    Even so, much of the administration’s plan depends on lawmakers reaching agreements on some of the stickiest points of reforming a housing finance system forged during the financial crisis and frozen in amber since.
    While there is wide bipartisan agreement that federal housing policy is in dire need of reform, Congress lacks consensus with the 2020 presidential election approaching.
    “It is wildly optimistic to think that this Congress will act on any of the suggestions directed toward it,” wrote Thomas Wade, director of financial services policy at the American Action Forum, a right-leaning think tank.
    “These detailed and numerous recommendations represent a tall order for a divided Congress, particularly in the run-up to an election,” Wade added.
    The Trump administration’s push to complete what is often called the unfinished business of the 2007 to 2008 financial crisis comes amid a frantic time for Washington and the nation’s politics at large.
    Lawmakers already face looming deadlines to strike a government funding deal and reauthorize several crucial programs.
    Congress has less than a month to reach a government funding deal, which will require intense negotiations over immigration, border funding and other hot-button issues. Failure to do so could plunge the government into another federal shutdown this year, and just months before the first votes are cast in the Democratic presidential primary.
    Yet the Trump administration is still pushing for action on an ambitious, if open-ended, plan for housing finance reform.
    Treasury Secretary Steven Mnuchin, Housing and Urban Development Secretary Ben Carson and Federal Housing Finance Agency (FHFA) Director Mark Calabria will kick off that campaign Tuesday before the Senate Banking Committee.
    All of the administration’s legislative proposals would run through the banking panel, which has been the incubator and battleground for several failed attempts to free Fannie and Freddie from federal control.
    The committee’s most recent failed effort was a 2014 bill from the panel’s former chairman, retired Sen. Tim Johnson (D-S.D.), and Sen. Mike Crapo (R-Idaho), who took the committee gavel in 2015.
    The Johnson-Crapo bill was approved by the banking panel by a slim bipartisan margin, but it died in the full Senate under fire from both progressives and conservatives. Sen. Elizabeth Warren (D-Mass.), then an emerging progressive force and now a 2020 presidential candidate, helped rally Senate liberals against the bill, effectively dooming it in the then-Democratic-controlled Senate.
    Since then, the issue has only become more politically charged thanks to soaring U.S. rents and housing prices. Housing policy has been a central focus of several 2020 Democratic presidential campaigns, including Warren’s, who torched the Trump administration proposal in a Friday statement.
    Warren and other liberal critics have seized on the administration’s proposal to replace mandates to support affordable housing with a fee paid by Fannie and Freddie that would subsidize a taxpayer-funded backstop on certain home loans.
    “In the middle of a housing affordability crisis, when the gap between the Black and white homeownership rates is as big as it was when housing discrimination was legal, the Trump Administration wants to make it harder for creditworthy working families — especially families of color — to buy a home and build wealth,” said Warren. “That’s shameful.”
    While Warren may wield a louder megaphone thanks to the 2020 race, the opposition of Rep. Maxine Waters (D-Calif.) poses an even greater challenge for the administration’s plan.
    Waters, chairwoman of the House Financial Services Committee, has prioritized access to affordable housing and has condemned the Trump proposal as an “egregious” threat to low-income families.
    Without buy-in from Waters, a Senate-passed measure would see no action in the Democratic-controlled House. Democrats are already loath to give Trump a legislative victory before the 2020 election, and Waters is likely to prioritize her own proposals to fight homelessness over the White House wish list.
    Industry reform advocates are candid about the slim chances of passing a bill through a divided Congress ahead of an election, but they tout common ground on certain aspects of housing finance policy, like conservatorship and preserving the 30-year fixed rate mortgage.
    “It’s just not healthy or safe for the long-term interest of our economy to have this,” said former Obama FHFA Director Ed DeMarco, about government control of Fannie and Freddie. DeMarco now serves as president of the Housing Policy Group, a trade group representing mortgage lenders and servicers in Washington, D.C.

    Advocates, though, are keeping up pressure for action.
    “There’s a lot of common ground to start with in the foundation,” DeMarco continued.
    “What matters is if the leadership in both the committee and in the administration are ready to say, ‘OK, it’s time to actually drive to a better decision.’ ”
    Trump has so much crap to fix.
    Even two terms are not enough.
    We should start looking for his 2024 replacement who would be strong enough and smart enough to double up on Trump's legacy, foundation that Trump is laying in.
    Unfortunately I today do not see people like that ... except perhaps Sarah Huckabee Sanders or Nikki Haley. But I'm not sure yet.
     
    Venom

    Venom

    Legendary Member
    Trump fired John Bolton.

    Maybe trump is a man of peace and deals after all
     
    Thawra # Furoshima

    Thawra # Furoshima

    Well-Known Member
    Pharma stocks fall as draft of House Democratic drug price plan surfaces on Capitol Hill
    PUBLISHED AN HOUR AGOUPDATED AN HOUR AGO

    Berkeley Lovelace Jr.@BERKELEYJR













    KEY POINTS
    • Pharmaceutical stocks fell after a document of Nancy Pelosi’s plan to reduce U.S. drug prices was made public.
    • The main thrust of the plan, which is still in flux, would allow Medicare to negotiate lower prices on the 250 most expensive drugs.
    • Those discounts would then apply to private health plans across the U.S.
    GP: Trading On The Floor Of The NYSE Lilly

    Traders work beneath monitors displaying Eli Lilly signage on the floor of the New York Stock Exchange.
    Michael Nagle | Bloomberg | Getty Images
    Pharmaceutical stocks fell Tuesday after an early draft of House Speaker Nancy Pelosi’s long-anticipated plan to reduce U.S. drug prices surfaced on Capitol Hill.
    The main thrust of the plan, which is still in flux, would allow Medicare to negotiate lower prices on the 250 most expensive drugs and apply those discounts to private health plans across the U.S., according to a copy of the document reported by Bloomberg Government. A senior Democratic aide verified the authenticity of the document but cautioned that it wasn’t the most current version and was subject to change.

    Shares of drugmakers fell on the news. Eli Lilly was down by about 1% in afternoon trading. Merck and GlaxoSmithKline both fell by more than 2%. Evercore ISI analyst Umer Raffat told clients Tuesday that the proposal showed “some extremely ambitious proposals,” including price negotiations.
    The Department of Health and Human Services is currently prohibited from negotiating drug prices on behalf of Medicare — the federal government’s health insurance plan for the elderly. Private insurers use pharmacy benefit managers to negotiate drug rebates from pharmaceutical manufacturers in exchange for better coverage.
    Pelosi has been working for months on a plan that would give HHS that power. House Democratic leaders went on a “listening tour” around the party earlier this year to discuss details of Pelosi’s plan, but haven’t yet distributed it across the caucus, a Democratic aide said in an interview. The legislation is expected to be unveiled as soon as this month.
    Pelosi spokesman Henry Connelly declined to comment on the draft.
    She continues “to engage members across the caucus as the committees of jurisdiction work to develop the boldest, toughest possible bill to lower prescription drug prices for all Americans,” he said in an email.
    High prescription drug costs have become a rare bipartisan issue, with lawmakers on both sides of the aisle demanding changes. Democrats are jockeying to prove they can lead reform. President Donald Trump has made lowering prices one of the key issues of his administration, as health care remains a top issue for voters in the 2020 elections.
    Americans are increasingly in favor of more federal regulation to bring down high prescription drug prices, including letting the government negotiate directly with drugmakers, according to a survey from the Kaiser Family Foundation. While House Democrats have proposed letting the government negotiate with drugmakers directly, opposition is strong among Republicans who say they want prices negotiated in a free market.
    Another plan, from the Senate Finance Committee and backed by Trump, would also make changes to Medicare and include a penalty for pharmaceutical companies that raise drug prices faster than inflation. The plan, which a Republican aide told CNBC that lawmakers see as a “middle ground” approach to drug prices, also received pushback from Republicans who argued the penalty rule was an excessive government intervention.
    Trump has so much crap to fix.
    Even two terms are not enough.
    We should start looking for his 2024 replacement who would be strong enough and smart enough to double up on Trump's legacy, foundation that Trump is laying in.
    Unfortunately I today do not see people like that ... except perhaps Sarah Huckabee Sanders or Nikki Haley. But I'm not sure yet.
    now drugs price reforms
     
    Thawra # Furoshima

    Thawra # Furoshima

    Well-Known Member
    Pete Schroeder
    WASHINGTON (Reuters) - The Trump administration will pursue the reform of mortgage giants Fannie Mae (FNMA.PK) and Freddie Mac (FMCC.PK), the guarantors of over half the nation’s mortgages, if Congress fails to act, officials told Congress on Tuesday.


    U.S. Treasury Secretary Steven Mnuchin testifies before a Senate Banking, Housing and Urban Affairs Committee hearing on "Housing Finance Reform: Next Steps" on Capitol Hill in Washington, U.S., September 10, 2019. REUTERS/Jonathan Ernst
    In testimony before the U.S. Senate Banking Committee, U.S. Treasury Secretary Steven Mnuchin, Housing and Urban Development Secretary Ben Carson, and Federal Housing Finance Agency Director Mark Calabria defended a plan to release Fannie and Freddie from government control more than a decade after they were bailed out during the 2008 financial crisis.
    While reiterating that legislation to overhaul the entire system would be ideal, the officials insisted they would pursue reforms if Congress failed to act.
    “If we do nothing, this is going to end very badly,” said Calabria, who warned Fannie and Freddie are undercapitalized and overly reliant on government backing to weather any downturn.
    Mnuchin said he would like to end a 2012 policy of claiming all Fannie and Freddie profits “very quickly.” He added that beyond retaining earnings, the pair would also likely need access to third-party capital, estimating they could need to raise roughly $100 billion in reserves.
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    And they received support from Senate Republicans to begin acting alone, as housing lobbyists are extremely pessimistic Congress would pass housing legislation before the 2020 presidential election.
    “While it’s the proper role for Congress to solve this ... I encourage you to act and to help us get to that point,” said Senate Banking Chairman Mike Crapo.
    Their plan, ordered by President Trump in March and published Thursday, is a first step on the long road to reforming Fannie and Freddie after a 2012 attempt by the Obama administration fell flat.
    Lawmakers covered a range of legal and economic issues, including how the Treasury intends to bolster Fannie and Freddie’s capital, and how the administration planned to shrink the pair’s footprint, all while keeping mortgage costs stable.
    The administration’s plan called for Congress to pass legislation to ensure the housing market is not destabilized, notably by giving an explicit government guarantee for Fannie and Freddie’s mortgage-backed securities, and setting up new charters that would allow other companies to compete.
    Republicans and Democrats are already at odds over the report. Republicans praise the inclusion of several recommendations outlined in a draft bill unveiled by Crapo in February. Democrats say the plan will drive up housing costs for lower-income Americans.
    “Rather than create a system that addresses the needs of working families, the Trump Administration has put out half-baked proposals that will make mortgages more expensive and harder to get,” said Senator Sherrod Brown, the top Democrat on the committee.
    Fannie and Freddie securities have traded in a tight range since the committee meeting began. Fannie preferred shares were last up 0.6% on the day while Freddie preferred shares were up 1.6%. Fannie Mae common shares were last down 4% while Freddie Mac common shares were down 4.6%.
     
    Thawra # Furoshima

    Thawra # Furoshima

    Well-Known Member
    Trump says US has reached 'initial' trade deal with Japan

    Trump says US has reached 'initial' trade deal with Japan
    BY NIV ELIS 630
    TWEET SHARE MORE
    President Trump on Monday notified Congress that he had struck an "initial" trade deal with Japan and would be signing it in the coming weeks.

    "My Administration looks forward to continued collaboration with the Congress on further negotiations with Japan to achieve a comprehensive trade agreement that results in more fair and reciprocal trade between the United States and Japan," the White House said in a statement announcing the trade agreement.

    Trump also told Congress that he would be entering an executive agreement with Japan on digital trade.

    The administration did not disclose details of the trade agreement.

    The announcement of an in initial trade deal comes after Trump said at the Group of Seven summit in August that he and Japanese Prime Minister Shinzo Abe had reached a deal in principle.

    "It involves agriculture, and it involves e-commerce and many other things. It’s a very big transaction, and we’ve agreed in principle," Trump said at the time.

    The agreement could be a win for a president who has been embroiled in trade wars, particularly with China.

    Trump has managed to negotiate and sign an update to the North American Free Trade Agreement, but it is unclear whether Congress will approve the treaty, called the United States-Mexico-Canada Agreement.

    House Speaker Nancy Pelosi (D-Calif.) has said she would not advance the bill without stronger enforcement mechanisms on issues such as labor and environment.

    Trump has also signed an updated trade deal with South Korea, though critics say the changes were minor and largely cosmetic.

    White House officials are expected to continue trade talks with China, and a high-level negotiation is planned for October. Trump has imposed tariffs on billions of dollars' worth of Chinese imports as part of their trade war, and China has retaliated with a slew of tariffs in response.
     
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