There were some small positive signs this week that the US and China might be moving towards some progress in the current trade war battles. The Chinese requested that the Trump Administration delay for two weeks, purportedly because of a national holiday, the implementation of the next round of tariffs.

The President agreed to delay the next round of scheduled increases from October 1 to October 15. This would give the two sides time to have a face to face meeting which is scheduled to happen in DC in early October. On Friday the Chinese responded to the two-week delay by agreeing not to impose their reciprocal tariff increases on October 15. Knowing that the farm vote is front and center in the President's thinking, the Chinese actions will apply to pork and soybean products.

While the Chinese action is a solid goodwill gesture it does not rollback the tariffs that they have already applied to both pork and soybeans. However, this does create a better atmosphere for some more meaningful action in October.

On the Fed front all attention will be on next week's FMOC meeting. While the President continues to jawbone the Fed to dramatically lower rates, the general expectation is that the Fed will lower the Funds rate by 25 bps. What will be closely watched is the Chairman...

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