After Xi’s reported terms were released this morning ahead of the Trump-Xi meeting, Larry Kudlow says that US is bringing no pre-conditions but warned that enforcement mechanisms will be key for any deal and additional China tariffs may still be necessary.
Algos immediately dumped stocks but some sense of reality came back quickly as this news is not news at all…
Kudlow pointed out that US wants a strong China deal with structural changes.
Additionally, a senior US administration official told Reuters that US is unlikely to lift restrictions on Huawei (one of Xi’s pre-conditions).
Kudlow also added that he agrees with the interest rate market on what The Fed should do… i.e. slash rates now!
Does that imply The White House will need cover for the fallout from a failed talk with Xi?
via ZeroHedge News https://ift.tt/2X9ZRk1 Tyler Durden