Stocks sharply higher…Mexico optimistic on avoiding tariff hike…Powell, prepared on trade impact
NEW YORK (AP) – Stocks have been sharply higher in morning trading on Wall Street as technology companies start to recover from yesterday’s steep losses. And, as investors continue to watch developments on the trade front, Mexico’s foreign minister said he expects the two sides to reach an agreement and avoid a 5% tariff on Mexican goods. Apple, Advanced Micro Devices and Bank stocks all moved higher.
WASHINGTON (AP) – Mexico says it sees a good chance of avoiding a 5% US tariff proposed by President Donald Trump with an agreement likely tomorrow. Mexico says that despite that optimism, it will also be ready for a non-agreement scenario. The diplomatic counteroffensive launched by Mexico this week includes a meeting today between Mexico’s trade negotiator and U.S. trade representative Robert Lighthizer (LYT’-hy-zur).
WASHINGTON (AP) – Federal Reserve Chairman Jerome Powell says the Fed is prepared to respond to the Trump administration’s trade conflicts in order to protect the U.S. economic expansion if it decides that would be necessary. The remarks were made at a conference in Chicago on how the central bank can make its interest rate policy more effective at a time when inflation remains chronically below the Fed’s target level. Powell calls persistently low inflation the “pre-eminent monetary policy challenge of our time,” because it limits the Fed’s ability to support the economy by cutting rates.
LONDON (AP) – At a news conference with British Prime Minister Theresa May in London, President Donald Trump says the United States is committed to a “phenomenal” trade deal with Britain as it prepares to leave the European Union. Prime Minister May praised the U.S. and the U.K.’s “precious and profound” special relationship but acknowledged differences with Trump on issues including climate change and Iran.
NEW YORK (AP) – Walmart is extending its debt-free college benefits to high schoolers as it is forced to compete with other major employers in a competitive job market. The retailer says it will offer free college SAT and ACT prep for its workers in high school, while also offering two to three free general education college classes through an educational startup. Walmart estimates about 25,000 people under the age of 18 work at its stores.