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.”
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