The Trump Trade goes both ways and the BoJ and MOF get some relief/Other good stuff

We're realizing again that the Trump Trade goes both ways and markets are responding to the Bloomberg interview. Tariffs of 60% might not be enough and 100% could be the rate we heard. Biden though doesn't disagree as we've seen his administration slap that on some more Chinese products and I'll call out both sides for their obsession with tariffs and the overall damage it does. People forget that the 2018 tariffs put the US manufacturing sector into a recession and we've been in another one for the past two years. Another tariff battle is a bad thing. Another economic fight with the 2nd largest economy is a bad thing. There is also a story this morning that the Biden administration will further limit the sale of chip related products to China. The daily bashing of China will continue until the election, at least, it seems. 

Also, the euro/yen heavy DXY is trading at the lowest level since March 20th as we were reminded that Trump doesn't like a strong dollar either. "We have a big currency problem he said." The yen in particular is having a good day. The Ministry of Finance in Japan is getting a free ride today on someone else's verbal FX intervention. 

As for Taiwan, Taiwan Semi is down almost 4% pre market and who is going to make Nvidia's chips if China takes advantage of the Trump comments? 

As for Jay Powell, he's now apparently welcome to stay on until his term ends to deal with the inflationary implications of all these tariffs and a weak dollar (though usually ones currency would rise with tariffs imposed on others).

Positively, a 15% corporate tax rate would make Corporate America and doing business in the US even more competitive. Just see how many companies have gone to Ireland to do business.  

Politics and policy is certainly a lot about trade offs for sure. 

Fed Governor John Williams is seemingly telling us that we won't be getting a surprise July rate cut. He said yesterday (posted today) in a WSJ interview that while they are gaining more confidence on the disinflationary trend, "I would like to see more data to gain further confidence inflation is moving sustainably to our 2% goal." 'Sustainably' again the key word.