August 2019: Diminishing Returns
August began with President Trump announcing suspended tariffs would go into effect. China responded by slapping a 5% tariff on US crude imports and raised rates on $75b of US imports. China faced other problems, as protests in Hong Kong intensified throughout the month over concerns that Hong Kong’s one-country, two-state framework was in jeopardy. Finally, Jay Powell’s long-awaited Jackson Hole speech at month’s end opened the door to September rate cuts.