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HOT MOMENTS: Trump Meets with Top CEOs at the White House! Here are the Latest Updates and Insider Leaks on the Customs Tariff Deadlock
Fox News reporter Charles Gasparino shared striking information about the discussions that CEOs in the US are having with the White House.
A senior CEO speaking to Gasparino stated that U.S. President Donald Trump is open to listening to CEOs' concerns about the impact of tariffs on the economy and markets. According to Gasparino, the biggest warning from the business world to Trump and his advisers is that the trade war being waged over tariffs needs to end as soon as possible.
CEOs emphasize that if this situation continues, the risk of stagflation, where recession and inflation occur simultaneously, will increase in the U.S. economy, warning that the 10-year U.S. Treasury yield reaching 5% will bring many risks along with it. It is stated that Trump needs to quickly return to his growth-focused agenda. The White House has assured CEOs that this transition has begun and that a basis for agreement with China still exists.
Gasparino points out that there is a growing consensus among high-level investors and market strategists: If the trade war is not resolved quickly, it is inevitable that the 10-year bond yields will reach 5%. However, according to Gasparino, the Trump administration is currently conducting 75 different trade negotiations simultaneously, and the agreement with China is expected to be long and arduous. This means that uncertainty and volatility in the markets could persist for a long time.
On the other hand, Boston FED President Susan Collins stated that they did not see a general liquidity problem in the markets. Speaking to the Financial Times, Collins noted that the Central Bank has the tools to intervene in case any issues arise related to market functioning or liquidity. Collins conveyed the message that "the FED is definitely ready to stabilize the markets when necessary."
White House spokesperson Karoline Leavitt emphasized that Trump's changes to tariffs made this week are an important tactic in negotiations for new trade agreements. Trump announced that the country-specific tariffs would come into effect within 90 days and that if an agreement cannot be reached during this period, the situation would be reassessed.
Leavitt argued that the given 90-day period is part of Trump's long-term plan, stating, "Countries that considered the President's warnings were rewarded with lower tariffs during this period, creating opportunities to achieve lasting solutions."
However, Leavitt did not provide a definitive statement on whether tariffs would be reinstated at the end of 90 days. By saying, "A decision will be made at the end of this period," he also implied that Trump left some room for flexibility.