Publications

The Washington Post reports that President Trump says that he will proceed with tariffs on $50 billion in Chinese imports as well as limits on Chinese investment in U.S. high-tech industries. The announcement comes ahead of Commerce Secretary Wilbur Ross’s trip to Beijing this week for talks aimed at relieving trade tensions between the two countries. WaPo

According to the Wall Street Journal, credit growth slowed noticeably in the first quarter of 2018, driven in large part by a pullback in auto lending. Data from the New York Federal Reserve show that auto delinquencies have consistently climbed over the past three years, a trend that could worsen as interest rates continue to rise in coming months. WSJ

The Wall Street Journal reports that the Congressional Budget Office (CBO) forecasts a federal budget deficit $2.3 trillion larger than the White House’s estimate for the coming decade. Compared to the White House’s budget estimate for the next ten years, the CBO projects that the government will bring in $1.9 trillion less in revenue and spend $300 billion more, reflecting different expectations of how the economy will perform. WSJ

According to the Wall Street Journal, Federal Reserve Chairman Jerome Powell said that an erosion of public trust in institutions following the Great Recession could threaten the independence of central bankers. Powell advocated for greater transparency from policy-makers as a way to boost public trust, pointing to the Fed’s recent efforts to increase disclosures about big-bank stress tests as an example. WSJ

The Wall Street Journal reports that President Trump has threatened to impose tariffs of up to 25% on imported cars. The move would hit some of the U.S.’ closest allies the hardest, as countries like Germany, Japan, and South Korea collectively accounted for roughly 20% of the vehicles sold in the U.S. last year. WSJ

According to the Wall Street Journal, Federal Reserve officials have signaled their intention to raise interest rates when they meet again in June. Officials also said that interest rates could move and remain above their long-run normal level for an extended period of time, as the U.S. economy is expected to operate above potential in the short term. WSJ

According to the Wall Street Journal, the U.S. has suspended its threat to impose tariffs on $150 billion of Chinese imports. Treasury Secretary Mnuchin said that the tariffs will be put on hold while the two countries negotiate a trade deal that would aim to reduce the bilateral trade deficit and ease investment restrictions in both countries. WSJ

The Wall Street Journal writes that major oil companies are embracing Latin America as the target for much of their investment in new wells. Latin America has become a profitable source of oil for many international firms, though the risk of political turmoil and resource nationalism has become problematic in some areas. WSJ

Eric Morath of the Wall Street Journal writes that a new study found that workers are most willing to relocate for high-tech jobs in large coastal cities such as San Francisco or New York. However, the bulk of open jobs in the U.S. are concentrated in the Midwest region, meaning this focus on technology jobs on the coasts could worsen labor shortages in an already-tight labor market. WSJ

The Wall Street Journal reports that in an effort to ease trade tensions with the U.S., China backed off an anti-dumping probe into imported U.S. sorghum. The end of the probe signals progress on a deal for China to lift recent tariffs on U.S. agricultural imports in exchange for eased U.S. sanctions on Chinese telecom firm ZTE, though hurdles remain. WSJ