Publications

The Wall Street Journal reports that China has announced a new duty — which will take effect tomorrow — of 178.6% on imports of U.S. sorghum. The duty, a result of an anti-dumping investigation by Chinese authorities, is seen as preliminary and is a response to tariffs on Chinese solar panels and washing machines. WSJ
 
According to the Financial Times President Trump has nominated Richard Clarida to be vice-chair of the Federal Reserve and Michelle Bowman to be another board member. Clarida is a former Treasury Department official who has supported the view that low interest rates may be here to stay due to structural forces in the economy, while Bowman is a top bank regulator from Kansas. FT

The Job Openings and Labor Turnover Survey (“JOLTS”), a closely-watched measure of labor market health, indicated there were 6.1 million job openings at the end of February, down slightly from January.  Hires fell to 5.5 million while the quits rate was unchanged at 2.2%.  BLS Report

The Wall Street Journal reports that the White House plans to escalate trade pressures on China by implementing new tariffs and limiting Chinese technology investment in the U.S. President Trump has also reportedly directed top economic advisers to explore rejoining the Trans-Pacific Partnership (“TPP”), a trade agreement that the President withdrew from as one of his first official actions. WSJ

Michael S. Derby of the Wall Street Journal writes that Boston Fed President Eric Rosengren warns that recent tax cuts and spending increases are raising the risk that fiscal policy will be unhelpful in the event of another economic downturn. Rosengren said that the federal government will have little ability to further cut taxes or expand spending given the current forecasts of massive government deficits. WSJ

The Wall Street Journal reports that Federal Reserve officials at their last meeting expressed greater confidence that inflation would accelerate to their 2% target in the coming year. Officials also said that recent tax cuts and increased government spending will cause the economy to “run hot” over the next few years, possibly requiring more rapid rate increases. WSJ

Bob Davis of the Wall Street Journal writes that a new study shows that China’s requirement for foreign firms to partner with domestic firms in order to operate in China is overwhelmingly beneficial to Chinese firms. The authors find that while these requirements may be onerous for foreign firms, the benefits associated with operating in the Chinese market generally outweigh the costs. WSJ

The Wall Street Journal reports that the White House is preparing an aid package for farmers harmed by potential tariffs on U.S. exports to China. The administration is reportedly examining past farm income-assistance programs such as the Commodity Credit Corp., which was formed to stabilize farm incomes during the deepest parts of the Great Depression. WSJ

Lingling Wei of the Wall Street Journal writes that Chinese President Xi Jinping offered to further open China’s markets to foreign businesses. President Xi promised that China would import more foreign goods, accelerate access to Chinese insurance and financial sectors, and offer greater protection for intellectual property. WSJ