Weighing The Week Ahead: Can Negative Feedback Alter Trump’s Course?

Weighing The Week Ahead: Can Negative Feedback Alter Trump's Course?

Summary The economic calendar is a big one, but next week’s will be even bigger. And people will be back from vacation. Friday’s steep market declines, augmented by algorithms and technical selling, led to plenty of scary news headlines. Despite the news, the US economy and corporate earnings have been fine. Most of the issues are of the self-inflicted variety. With plenty of complaints from GOP supporters, businesses, candidates, and contributors, we can hope for a course more sanguine for the world economy. And finally, there are signs within the Trump Administration that recession fear is rising. That could also change policy. The economic calendar is significant, but fundamentals are taking a secondary role. The Friday Presidential tweetstorm raised uncertainty on trade, the global economy, Fed policy, taxes, and traditional alliances. Attention now turns to the reaction. Can the widespread negative feedback alter President Trump’s course? Last Week Recap In last week’s installment of WTWA, I focused on the recent inversion of the yield curve and the upcoming meeting in Jackson Hole. That was a good guess for the top market issues until Friday morning. With Chairman Powell’s speech in the books and markets calming, the tweets began. The trade war moved a notch higher, and that was only one of many issues. The Story in One Chart I always start my personal review of the week by looking at a great chart. This week I am featuring Investing.com’s version . The tags show news events which you can […]

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