May 2018 Economic Recap
President Trump announced that the U.S. was imposing previously announced tariffs of 25% on imported steel and 10% on imported aluminum from the EU, Mexico, and Canada. Reaction was strong and swift, Canadian Prime Minister Justin Trudeau announced that Canada would be imposing identical tariffs on U.S. steel and aluminum, along with some food and agricultural products. The EU has also said that it’s planning on imposing duties on up to $7.5 billion of U.S. goods, and Mexico’s Economy Ministry has said that it will use more targeted measures on a variety of U.S. products.
Minutes from the Fed’s May meeting indicated that a rate hike at the upcoming June meeting is almost certain. Specifically, committee members stated that if the economy continues on its current path, “it would likely soon be appropriate for the committee to take another step” in removing policy accommodation. Officials currently have two further hikes (including the one in June) penciled in for this year, however continued progress in the labor market has the potential to push that higher.
For a deeper consideration of the economic data released during May, please follow the links below: