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

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza