Happy hump day.
United States Secretary of the Treasury Steven Mnuchin made comments on the trade talks early Wednesday. Mnuchin says that he believes that the U.S. and China are almost 90% of the way through trade talks. Fed chair Jerome Powell spoke about the need for the central bank to remain independent and to not cave to "short-term political interests."
The Trade Talks
While you were probably sleeping, Mnuchin told CNBC that a U.S.-China trade deal was around "90%" complete. But the deja vu you're feeling is probably caused by the fact that the market has heard similar bullish statements in the past. Mnuchin added, "I think there's a path to complete this" when President's Donald Trump and Xi Jinping meet later this week at the G20 Summit in Japan.
"The message we want to hear is that they want to come back to the table and continue because I think there is a good outcome for their economy and the U.S. economy to get balanced trade and to continue to build on this relationship," Mnuchin said.
Should you believe a trade resolution is coming to a White House near you? ActionAlertsPLUS.com's senior analyst Jeff Marks breaks down what to expect.
The Federal Reserve
In case you missed it...
Comments from Powell and St. Louis Federal Reserve President James Bullard cooled investor optimism about a rate cut next month.
"The Fed is insulated from short-term political pressures--what is often referred to as our 'independence,'" Powell said. "The question my colleagues and I are grappling with is whether these uncertainties will continue to weigh on the outlook and thus call for additional policy accommodation."
Powell's remarks were preceded by comments from Bullard, the most dovish of the FOMC's voting members, who told Bloomberg Television that a rate cut in July of 50 basis points likely would be "overdone" given the underlying strength of the U.S. economy.
Powell may not be following President Trump's lead, but will the Fed bow to pressure from Wall Street?
Real Money Stock of the Day Micron posted earnings after the bell Tuesday.
Adjusted earnings in the quarter were $1.05 a share, beating analysts' estimates of 76 cents. Revenue of $4.79 billion was down from $7.8 billion a year earlier but topped forecasts of $4.71 billion.
"Micron's improved competitive position and strong execution helped us deliver solid results despite a challenging environment," said Micron President and CEO Sanjay Mehrotra. "While we are seeing early signs of demand improvement, we plan to reduce our capital expenditures in fiscal 2020 to help improve industry supply-demand balance."