EU And China Focus On Blockchain Amid Tariff Strains

Source: Bloomberg Europe

Source: investing

Two weeks ago, we pointed out that the propaganda bunker of militant radical marxists, also known as the University of Michigan Economist Department had made another catastrophic error in their so-called "consumer sentiment" survey which we are increasingly confident is the most fabricated piece of economic data still used for some inexplicable reason by traders to set market sentiment.

Specifically, we pointed out that while 1 Year inflation expectations across every single party tumbled (yes, even Democrats), the overall average was unchanged, with the report claiming that 1Yr inflation expectations were somehow 4.8%, even though Republicans were at 1.2%, Independents were below the average at 4.7% and Democrats, and their TDS hyperinflation delusions, were barely above it at 5.4%. How you get 4.8% based on this was unknown to anyone.

Well, two weeks later it appears they finally figured out what a mess their "data" reporting is and moments ago in the final Sept. UMich report they fixed it: according to the latest UMich propaganda, 1 Year inflation expectations are now 4.7%, down from 4.8% reported in the prelim report, and reversing some of the ridiculous August spike (how the average is 4.7% when Independents are 4.7%, Democrats are 5.4% and Republicans are 1.2% remains a mystery)...

... even as 5-10 Year inflation expectations rose again, only here too the change was moderated, and instead of 3.9% as was reported in the prelim report, the number has dropped to 3.7%

But while UMich may have fixed their 1 year inflation expectations report, the flaming dumpster fire was on full display in the 5-10Year inflation expectation chart, where even though Republicans and Independents inflation expectations dropped, and Democrats were unchanged, the overall median number ridiculously increase from 3.5% to 3.7%.

Anything to satisfy the UMich marixst Trump Derantement Syndrome, even if it makes zero math sense.

The rest of the report was the usual garbage propaganda one would expect when a bunch of marxists talk to a bunch of ultra-right win liberals: in the final revision, US consumer sentiment tumbled for the second month in a row, down from 58.2 to 55.1 - a four month low - and below the median estimates of 55.4 (as a reminder, the original prelim estimate was 58.0) with both Current Conditions (60.4, prelim 61.0, August 61.7) and Expectations (51.7, prelim 51.8, Last 55.9) declining and missing estimates (61.3 and 52.0, respectively).

“Consumers continue to express frustration over the persistence of high prices, with 44% spontaneously mentioning that high prices are eroding their personal finances, the highest reading in a year,’’ Joanne Hsu, director of the survey, said in a statement.

“Interviews this month highlight the fact that consumers feel pressure both from the prospect of higher inflation as well as the risk of weaker labor markets,” Hsu said, recounting perhaps her latest soiree with her fellow marxist liberals cat ladies.

Hilariously, even UMich had to factor for the fact that stocks have never been higher, and said that while sentiment declined among most income groups, it held steady for those with larger holdings of stocks.

In other words, UMich continues to primarily speak to Democrats who remain massively short ever since Liberation day and are getting margin called every single day.

“These differing trends by wealth help provide some insight about the relative resilience in aggregate spending seen in recent months,” Hsu said. That or maybe stop publishing ridiculous propaganda and actually provide an objective, unbiased take of what the broader population - not a bunch of masked Karens - really thinks.

Source: Zero Hedge

Source: investing

What do you do when you are highly underqualified for your job, which you plagiarized to get in the first place, and on top of it all you broke the law and now your current boss doesn't want you any more? Well, you sue of course... and if that doesn't work, you claim that the world will end if you are let go.Yes, that's the traditional flowchart for government DEI hires, it's also what Fed governor Lisa Cook is doing as she fights tooth and nail to say on at the Fed.

Fed Governor Lisa Cook’s attorneys urged the US Supreme Court to let her stay on the job while she fights President Donald Trump’s attempt to fire her, warning that even her temporary removal risks “chaos and disruption” in financial markets.Granting the Justice Department’s request to allow Trump to immediately oust her “would sound the death knell for the central-bank independence that has helped make the United States’ economy the strongest in the world,” her lawyers wrote in a brief filed Thursday.

Or maybe just keep your client from breaking the law? Of course, since that's impossible, you go straight to the apocalypse that will follow should Trump get to say his favorite phrase.In her brief, Cook's lawyers claim that Trump should have no authority to fire her, and that as of 2023, "only 12 nations with central banks allow the removal of central-bank board members at the executive’s discretion for policy reasons or for no reason at all." Those 12 nations are Bangladesh, Chile, China, Comoros, Iran, Kazakhstan, Laos, Morocco, Thailand, Tunisia, Turkmenistan, and Vietnam.

Well, the US will make it 13.

The DOJ has asked the Supreme Court to let Trump remove Cook, an appointee of former President Joe Biden, who has continued serving in her post since late August when Trump announced he would remove her due to mortgage fraud allegations that she’s denied.The Supreme Court set a fast schedule for written briefs in the case but hasn’t signaled precisely when it intends to rule.In the new filing, Cook’s lawyers argued that the Justice Department’s delay in asking for Supreme Court intervention until after the Fed’s last policy meeting on Sept. 16-17 was a possible sign the administration “understood the chaos” that might unleash in markets. It also undercut the government’s demand for “immediate relief,” according to the filing.

Cook’s brief cites a 2009 law review article in which then-Judge Brett Kavanaugh discussed how the Fed is insulated from direct presidential control because of its “power to directly affect the short-term functioning of the US economy.” Kavanaugh, now a Supreme Court justice, will be a pivotal vote in the case.The largely conservative Supreme Court this year has largely sided with Trump in fights over his firings of other federal agency officials, but the justices previously made a point of distinguishing the Fed as a “uniquely structured, quasi-private entity.” A key question with Cook is whether the court will apply that distinction in a case involving alleged wrongdoing by a Fed official, albeit before she was appointed to her post.

Cook’s theatrical filing came hours after she won the support of a bipartisan group of former Treasury secretaries, former Federal chairs and other experts who all signed a letter in the docket, backing her case with the justices. The group, which includes former Fed chairs Ben Bernanke, Alan Greenspan and Janet Yellen - the people directly responsible for America's catastrophic debt load - said allowing Trump to oust Cook while she challenges her removal would do lasting damage to the public’s trust in the Fed while jeopardizing the credibility and efficacy of US monetary policy.

As if anyone believes the Federal "Inflation is transitory" Reserve has credibility, especially after it slashed rates 50bps 2 months before the 2024 election to ensure that Kamala Harris is elected. As for the letter, it's not the first time we have seen 51 former officials bend over backwards and trample their reputation, just to lie just to perpetuate the broken status quo.Trump said last month he was firing Cook after Federal Housing Finance Agency Director Bill Pulte accused her of fraudulently listing homes in Michigan and Georgia as a “primary residence” when she obtained mortgages in 2021 to secure more favorable terms on loans.

Cook’s lawyers have said the allegations are part of a “smear campaign” aimed at discrediting Cook and helping Trump seize control of the Fed, which he has pressured for months to lower interest rates. They argued in the latest brief to the Supreme Court that “fundamental flaws” in the mortgage fraud claims “have already come to light,” citing media reports that she “properly declared her Michigan home as her principal residence” and “accurately described the Georgia property in question as a vacation home.”

“When that record is compiled, it will demonstrate that Governor Cook never acted improperly with respect to her mortgages and thus will eliminate the president’s stated ground for his purported removal,” her lawyers wrote.A month ago, Cook filed a lawsuit in federal court in Washington to block her dismissal, arguing Trump’s unproven claims about mortgage fraud do not amount to “cause” under US law for firing her, and that her purported dismissal via social media post deprived her of her constitutional right to due process.

Shortly after, her sorority sister, US District Judge Jia Cobb on Sept. 9 ruled that Cook could remain on the job as her case proceeded, saying that Trump’s attempt to oust her likely violated the law. A divided federal appeals court upheld the ruling on Sept. 15, just hours before the start of the Fed’s highly anticipated two-day meeting to vote on interest rates.The officials lowered their benchmark interest rate by a quarter percentage point. One year ago they lowered the rate by half a percentage point when the economy was in stronger shape and when inflation was hotter. However, back then the Fed was also tasked with helping elected Kamala Harris. It failed.

Source: Zero Hedge

India said it held "constructive meetings" with the US this week on a trade deal, although Washington's demand that New Delhi stop buying Russian oil is weighing on the negotiations.

US trade negotiators made it clear to their Indian counterparts that resolving the Russia issue was crucial to reducing India's tariff rate and sealing a trade deal, a person familiar with the matter said, asking not to be identified because the discussions are private. While the negotiations this week were positive, they failed to yield any significant breakthroughs, the person said.

An Indian team led by Commerce Minister Piyush Goyal offered concessions to the US officials, including easing some restrictions on the import of genetically modified corn, and offering to buy more American defense and energy goods, the person said. Goyal said Wednesday that India was willing to buy more energy goods from the US "in the years to come."

President Donald Trump doubled tariffs on Indian goods to 50 percent last month, accusing New Delhi of helping Russian leader Vladimir Putin finance his war in Ukraine. India's government has struck a defiant tone, saying it won't halt Russian purchases and calling the US's actions "unfair, unjustified and unreasonable."

The trade negotiations in Washington from Sept. 22-24 were constructive, with both sides exchanging views on the "possible contours of the deal," India's government said in a statement. Goyal met with US Trade Representative Jamieson Greer and Sergio Gor, Trump's nominee for ambassador to India. The minister also met with Indian businesses and investors during the trip.

A spokesperson for the US embassy in New Delhi said it doesn't comment on private diplomatic conversations, while reiterating the Trump administration's position that India’s actions were undermining US efforts to counter Russia. The 25 percent penalty on India "aims to deter countries from supporting the Russian economy through oil revenue and impose serious economic consequences on Russia for its ongoing aggression," the spokesperson said in an emailed response to questions.

Immigration Rules

The impasse makes prospects for a trade deal uncertain despite optimism following last week's resumption of talks and a call between Trump and Indian Prime Minister Narendra Modi. The US president’s recent crackdown on the immigration of skilled workers - rules that will disproportionately hurt Indian nationals - further complicates the negotiations.

New Delhi's broad strategy to secure a trade deal includes reducing the trade surplus with the US by buying more American goods, improving access to Indian markets and easing trade barriers, people familiar with the matter said.

India is considering roughly $40 billion of big-ticket purchases such as defense and oil from the US, the people said, asking not to be identified because the discussions are private. New Delhi is discussing buying limited quantities of genetically-modified corn, not meant for human consumption, and non-core dairy products, which aren't produced in the nation, the people said.

The US’s trade deficit with India stood at $42.7 billion in 2024.

Officials have also conveyed to the US that any significant reduction in Russian oil imports would require Washington to instead allow crude purchases from sanctioned suppliers Iran and Venezuela, Bloomberg reported Thursday.

Source: Rigzone