5 things to know before opening the scholarship August 23, 2019

US equity futures were higher on Friday morning, but weakened after the Chinese newspaper Global Times announced that Beijing would soon release a plan to impose retaliatory duties on certain US products. Then, the call of the President of the St. Louis Federal Reserve, James Bullard, for further interest rate cuts in the United States has been helpful. Thirty minutes after the opening of Wall Street at 9:30 am, Fed Chairman Jerome Powell delivers a speech at the Central Bank's annual economic symposium in Jackson Hole, Wyoming. The Dow Jones Industrial Average, the S & P 500 and the Nasdaq were preparing to break their series of three defeats. The Dow closed slightly higher on Thursday, while the S & P 500 and Nasdaq ended lower. With six trading days remaining in August, the three stock measures were still in negative territory for the month. However, before the Friday session for the whole of 2019, the Dow Jones index was 12.5%; the S & P index was up 16.6%; and the Nasdaq rose 20.4%.

Powell's speech could make or break the markets on Friday. It faces the difficult challenge of presenting a unified voice on monetary policy from the most divided central bank in years. It could create transaction volatility if it does not indicate its intention to reduce interest rates again. On Friday morning, the market was expecting a quarter-point rate cut next month, following a similar cut in July. Under pressure from President Donald Trump to keep up with the pace of accommodation around the world, the work of the Fed will not be easier. The Indonesian central bank lowered its rates overnight in a surprise move.

Bullard of the St. Louis Fed told CNBC on Friday that central bankers should cut their rates because the inverted yield curve is "not a good place to be." Bullard, a voting member of the policy committee this year, said the Fed should "subscribe to insurance" with a rate cut, adding that she could still recover it. On Thursday, Patrick Harker, chairman of the Fed at the Philadelphia Fed, non-voting in 2019, told CNBC that he saw no reason for another rate cut. Kansas City Fed President Esther George said on CNBC that the Fed did not need to cut rates because the economy remained strong. She was one of two Fed presidents in the region who voted against the July Cup. George also said the Fed's "big balance sheet" was putting pressure on long-term bond yields, likely contributing to recent yield reversals.

Treasury yields rose on Friday morning, a day after 10-year yields reversed for the third time in just over a week, trading briefly below those of the previous two years. . This generalized flip-flop has occurred before every recession of the last half-century. But it took on average nearly two years for the downturn to materialize. In addition to the US rate forecasts, traders will seek Powell's view of the inversions and negative rates in Europe and Japan.

Top Trump's economic adviser, Larry Kudlow, now reveals that the president could propose a tax cut before the 2020 elections. Kudlow's remarks in an interview on Thursday added another twist: a week of messages contradictory White House recommendations on possible tax cuts and other proposals to stimulate the economy. Mr. Kudlow also said that he is still waiting for Chinese negotiators to meet in Washington in September with government officials to continue negotiations to resolve trade and commercial disputes. between the two countries.