Publications

The Wall Street Journal reports that U.S. trade representative Robert Lighthizer says that the U.S. may move ahead with a bilateral trade deal with Mexico if Canada does not make concessions soon. Lighthizer says that Canada is not making the necessary concessions and that the U.S. intends to sign a deal with or without Canada in late November. WSJ

Paul Kiernan of the Wall Street Journal writes that consumers have yet to feel the pinch from steadily-rising interest rates. Kiernan points out that despite rising credit card rates, mortgage rates, and auto loan rates, consumers continue to spend at a healthy clip. WSJ

Sarah Chaney of the Wall Street Journal reports that the economic outlook among CEOs of America’s largest companies eased slightly in the third quarter. The Business Roundtable CEO Economic Outlook Index, which measures company plans for hiring and capex and expectations for sales, cooled somewhat in the third quarter amid rising concerns about the Trump administration’s recent trade actions. WSJ

According to the Wall Street Journal global oil prices rose today to their highest level in four years amid growing supply constraints. Brent crude rose above $81/barrel as OPEC members indicated that they would adhere to their plan to gradually ramp up production rather than increase output to help alleviate upward price pressures. WSJ

Tom Fairless of the Wall Street Journal writes that central bankers around the world are reconsidering the classic 2% inflation target. Some policymakers are calling for a higher inflation target that would allow central banks more room to cut interest rates in the event of an economic downturn, while others argue that a higher inflation target could distort tax systems or cause more price volatility. WSJ

The Wall Street Journal reports that the U.S. has exempted several obscure Chinese imports from tariffs because China remains one of the only sources for those goods. Imports such as barite, which is used in oil and gas exploration, and fluorine salts, an input for lithium-ion batteries, have been spared from the new 10% tariff because Chinese imports account for such a large share of these imported goods. WSJ

The Wall Street Journal writes that the latest round of tariffs on Chinese goods will likely raise auto-parts prices for U.S. consumers. The newest tariffs, which cover roughly $200 billion of imports from China such as auto parts, could impact the prices of both new and used cars in the coming months. WSJ

Lucy Hornby of the Financial Times reports that Chinese officials have pledged a series of pro-business reforms that aim to bolster foreign confidence in the Chinese economy. Officials say that China will cut taxes, promote lending to non-Chinese firms, and allow for equal treatment of foreign and domestic firms. FT

The Wall Street Journal reports that China will impose tariffs on $60 billion of U.S. goods in response to new U.S. tariffs on $200 billion of Chinese goods. President Trump has promised that if China were to retaliate against the new U.S. tariffs the U.S. would impose tariffs on a further $267 billion of Chinese imports, which would mean that the U.S. would have tariffs in place affecting nearly every good imported from China. WSJ

According to the Wall Street Journal, National Economic Council Director Larry Kudlow says that projected increases in federal government deficits are due to excess spending. Kudlow rejected the notion that deficits were widening because of recent tax cuts and stated that he expects the federal government to run deficits of 4-5% of GDP, which he believes “is not a catastrophe.” WSJ