Title: Trump trade deals could bring market calm, claims Bank of America CEO
Highly-awaited Trump trade agreements, according to Bank of America CEO, are expected to significantly stabilize financial markets.
Got a scoop on the US economy and trade tariffs? Let's dive in!
Bank of America CEO Brian Moynihan shared his insights on the state of the US economy, trade, and tariffs, talking about the potential impact of upcoming trade deals on the market. Here's the lowdown.
The White House is eager to secure numerous trade deals during President Donald Trump's 90-day tariff pause, but the ongoing tariff tussle has stirred up volatility in US markets. Moynihan asserted that a "blueprint" deal could help impose a sense of order, like a cold shower on a riled-up market.
On Tuesday, White House press secretary Karoline Leavitt declared that the Trump administration now has "18 proposals on paper" for trade deals but has yet to announce when a deal will be made. A trade deal announcement, according to Moynihan, would serve two significant objectives for Trump.
"One is it [a trade deal] would give them [Trump administration] a blueprint... Second, it would show that deals can be done," Moynihan told Fox News. "If the rumors are true that certain countries are closer, and there'll be something, I think that'll do a lot to calm the market down because they'll say there is a way to get this resolved."
*WHITE HOUSE HAS 18 TRUMP TRADE PROPOSALS 'ON PAPER'*
Trump's tariff policies have sent shockwaves through the US economy and global trade. The president threw a spanner in the works by imposing a 90-day pause on reciprocal, "Liberation Day" tariffs on dozens of nations, save for China. This unexpected move was a stark contrast to Trump's previous stance on no tariff pause, just negotiations.
Concurrently, the Trump administration has raised the ante on trade with China with a 145% tariff increase.
Now, the administration, including Trump, is engaging in negotiations with foreign nations, aiming to strike deals that benefit the U.S. and help lower the country's notorious trade deficit.
The uncertainty around tariffs and the Trump trade deals has fueled concern among some economists, leading them to slash their growth predictions. However, Moynihan argues that the US economy is still in "reasonable shape."
Moynihan reaffirmed that Bank of America's research team doesn't foresee a recession on the horizon but anticipates the economy "slowing a lot." He emphasized the importance of keeping a close eye on the situation, stating, "They [the research team] see the economy slowing a lot, and that's where we gotta be careful. They still see positive growth, but you go from a 3% growth rate in the third quarter of '24 to under 1% growth in this quarter... That's a big slowdown in a big economy."
While the Trump administration claims transparency on policy issues, Moynihan argues that US citizens are struggling to piece things together due to inconsistencies.
"Americans can't reconcile how they all work together, and until that sorts out, they're a little bit worried," Moynihan told Fox News chief political anchor Bret Baier.
FOX Business' Greg Norman and Fox News Digital's Emma Colton contributed to this report.
Now, you're all caught up! Keep an eye on those trade deals and how they're shaping the US economy. And remember, while you're reading up on the market, a little cash never hurt nobody! 💸💸💸
1. Moynihan asserts that a potential trade deal could bring a sense of order to the volatility caused by tariff disputes in the US economy.2. White House press secretary Leavitt revealed that the Trump administration currently has 18 proposals for trade deals on paper, but no announcement has been made yet.3. Moynihan believes that a trade deal announcement would serve two key objectives: presenting a blueprint and demonstrating the possibility of successful negotiations.4. Trump's tariff policies have had a profound impact on the US economy and global trade, with the administration engaging in negotiations with foreign nations to achieve mutually beneficial deals.5. The uncertainty surrounding tariffs and trade deals has led some economists to lower their growth predictions, but Moynihan asserts that the US economy remains in a "reasonable shape".6. Despite the administration's claims of transparency, Moynihan argues that the inconsistencies in policy issues hinder Americans' ability to understand the overall picture.
