The US Fed on Wednesday held interest rates steady between 2.25 percent and 2.5 percent. It also signaled that the three-year-long program to tighten monetary policy was coming to an end due to global economic shrinking. The US central bank also said it would be “patient” before making any moves when it comes to the rates.
Stocks rise
Fed Chair Powell called attention to trade wars, growth slowdown, Brexit and the recent US government shutdown as reasons behind the decision. The greenback fell against its peers after Fed’s dovish turn. US stocks surged.
Sino-US talks to continue with Trump
China and the US launched a fresh round of cabinet-level talks in Washington on Wednesday to bring a solution to their trade war. Negotiations led by the Chinese Vice Premier Liu He and US Trade Secretary Wilbur Ross are to go on today, with a meeting that will include President Donald Trump. There has been no comment regarding how the talks fare.
Congress acts to curb Trump’s trade powers
US lawmakers from both Democrats and Republicans introduced a bill to limit the president’s powers to impose import tariffs over national security reasons. The representatives want to be in the approval position over the President’s decisions in international trade. Trump has levied tariffs worth billions of Dollars on Chinese goods during the current friction.
Huawei in German crosshairs
Germany’s partly state-owned Deutsche Telekom is getting Chinese tech company Huawei’s mobile network products privately investigated before it decides to use them for fear of cyber-espionage on behalf of the Beijing government. This comes after the US and Australia banned the use of Huawei products in communication networks.
White House warns about Venezuela gold
Trump’s national security advisor John Bolton warned not to deal in Venezuelan gold and oil as the constitutional crisis and political turmoil deepen in the OPEC-member Latin American country.
“My advice to bankers, brokers, traders, facilitators, and other businesses: don’t deal in gold, oil, or other Venezuelan commodities being stolen from the Venezuelan people by the Maduro mafia. We stand ready to continue to take action,” Bolton tweeted.
Venezuela is struggling to find buyers to its oil after Washington imposed sanctions on the regime of President Nicolas Maduro who the US doesn’t recognize and says should step down. As of yesterday Venezuela had 25 tankers with nearly 18 million barrels of crude — representing about two weeks of the country’s production — either waiting to load or expecting authorization to set sail, Reuters reported.
US oil imports from Saudi Arabia fell by 442,000 barrels per day according to figures by Energy Information Administration (EIA).
