"U.S. equities at five-month highs, gold at one-year lows, the yen at five-month lows and Treasuries having their tightest yield range in almost 20 years on the week that tariffs were implemented. Where’s the risk aversion and the panic?"
Japanese cash wages soared by 2.1% y/y in May, up from 0.6% in April and more than double the median estimate of 0.9%, matching the fastest increase since 1994. And yet, at the same time, household spending tumbled at the fast pace in 2 years...
"We are looking for the Fed to communicate more clearly the intention of their policy so the market can understand clearly and also react and all the central banks can also anticipate and consider it in their policy making."
"Yes, a major trade war is likely to cause damage to the U.S. economy, but a lot of that will be in the longer term. It’s going to cause significantly more pain, especially in the short term, to all those exporters Trump is targeting."