While trade talks continue, the stock market is reacting over the uncertainty of the outcome.
Earlier this week, President Trump delayed implementing additional tariffs scheduled for September on China’s exports to the U.S. until December 15.
President Trump tweeted about China.
..deferral to December. It actually helps China more than us, but will be reciprocated. Millions of jobs are being lost in China to other non-Tariffed countries. Thousands of companies are leaving. Of course China wants to make a deal. Let them work humanely with Hong Kong first!
— Donald J. Trump (@realDonaldTrump) August 14, 2019
Also, there are troubling signs about the economy.
The U.S. Treasury bond yields are falling and there was an inverted yield curve where the yield on the short term bond was higher than the longer-term bond.
On many occasions, an inverted yield curve indicates a recession is on the horizon.
Questions over potential manufacturing slowdown in Pennsylvania, Michigan, and Ohio are swirling with worries the U.S.-China trade uncertainty could have an impact on hiring and support for President Trump in the 2020 election.
Fox News contributor Deneen Borelli discussed this topic with host Neil Cavuto on Fox News’ “Your World with Neil Cavuto,” with Moody’s Capital Markets Chief Economist John Lonski, and Democratic Strategist Max Burns.
Deneen said with all industries there will be ups and downs but the overall upward trend with the economy can’t be denied under President Trump and the booming economy is his biggest selling point along with record low unemployment numbers.
Watch the interview here.