As President Donald Trump returns to Washington following a quick trip to Scotland, global trade agreements and the Federal Reserve’s interest rate decision are expected to top his agenda this week.
On Sunday, Trump announced a trade deal with European Union Commission President Ursula von der Leyen in Turnberry, Scotland.
TRUMP ANNOUNCES TRADE DEAL WITH EUROPEAN UNION
The president said the U.S. will impose a 15% tariff on imported goods from the 27-country bloc. The previous tariff rate was set at 30%.
The EU’s von der Leyen said Europe will also purchase $150 billion worth of U.S. energy as part of the deal, in addition to making $600 billion in other investments.
Ahead of the fruitful trade negotiations, Trump had assessed the chances of a deal at 50/50, citing unresolved issues over the European car market and U.S. agricultural goods.
“It is about rebalancing,” von der Leyen told reporters alongside Trump. “We have a surplus and the United States has a deficit, and we have to rebalance it.”
WHERE TRUMP’S TARIFFS STAND NOW AND THE WINDING ROAD THAT LED US HERE
In July, Trump announced plans to impose a 30% tariff on imports from Mexico and the European Union. Those tariffs came on the heels of a 50% levy on copper imports and products from Brazil, a 35% tariff on Canadian goods and other tariffs imposed on more than 20 countries.
The Trump administration has said it does not anticipate extending or delaying any deals beyond the Aug. 1 deadline.
Federal Reserve Chairman Jerome Powell will announce a decision on the nation’s federal funds target rate this week following a two-day meeting of the Federal Open Market Committee (FOMC).
The 12-member FOMC will meet on July 29 to discuss monetary policy, with a key focus on whether to try to raise or lower the nation’s interest rates.
Trump, who named Powell as Fed chair in 2017, has stepped up his pressure campaign in recent weeks, urging the central bank to lower interest rates to 1% to stimulate economic growth.
A LOOK AT THE UNFOLDING BATTLE BETWEEN TRUMP AND POWELL OVER FED POLICY
Powell has held off cutting rates, in part, to assess the economic impact of Trump’s ongoing trade deals. Powell’s wait-and-see economic approach has kept the central bank’s key borrowing rate within a range of 4.25% to 4.5%.
Trump has previously placed the blame squarely on Powell for not cutting rates, a move he says has cost the U.S. “hundreds of billions of dollars.”
Before leaving for Scotland, the president called on Powell to cut the nation’s interest rates, citing a strong job market and cooling inflation.