Fed’s Kashkari Says US Has Upper Hand in Dispute with China

Even amid substantial bouts of market tumult, Minneapolis Fed President Neel Kashkari sees the U.S. as holding the upper hand in its trade showdown with China.

Stocks took another sharp drop Monday, but Kashkari said broader economic indicators are showing little signs of stress as the two sides ratchet up their tariff duel.

“Relative to China, the U.S. is in a very strong position,” the central bank official told CNBC’s “Squawk Box ” team. “Not only is our economy bigger, our economy is much less sensitive to trade. Trade is important to the U.S. economy, but it’s much more important to the Chinese economy, just as a share of its economy.

“So if there’s a tit-for-tat strategy, and I’m not advocating it, but a tit-for-tat strategy would seem to lean toward the U.S. strength rather than the China strength.”

via CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.