NAB Morning Call All eyes on US China talks. Trump wants rocket fuel from the Fed.
Jun 9, 2025
Taylor Nugent, NAB's market economist and strategist, shares sharp insights on the US jobs data that surprisingly exceeded expectations despite underlying weaknesses. He discusses President Trump's push for a rate cut to stimulate the economy and scrutinizes the declining trade relationship between the US and China. Nugent highlights shifts in trade dynamics, with China looking towards Asian and EU markets, and explores upcoming economic indicators that could shape consumer sentiment and monetary policy.
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Subtle US Labor Market Softening
- The US jobs data shows resilience but also subtle softening beneath the surface.
- Market pricing has adjusted, expecting fewer rate cuts this year than before the data.
Trump vs Fed Policy Tensions
- President Trump calls for a 1% Fed rate cut, contrasting with the Fed's patient stance.
- Discussions about Fed chair succession might introduce uncertainty in monetary policy.
China's Export Reorientation
- China’s exports to the US fell sharply despite tariff easing, but overall export growth remains resilient.
- Chinese exports shifted more toward Asia and the EU, indicating reorientation in trade flows.