Speaking at NY Economic Club
- Guess is announcement on new tariffs will be soon
- The big story is the changes in policy and the economic boom
- The tariff story may be a good thing. Market is saying trade reforms are necessary. That may be reflected in the stock markets performance.
- Still awaiting serious talks on China.
- Not going to rule out a trade deal with China.
- Would tell Chinese to just say yes on some trade issue of substance, US has put out asks.
- Mnuchin is in touch and negotiating with Chinese officials
- Trump has a grand strategy for trade negotiations, but it is hard to implement their reforms
- not near point where terms will be impacting the economy
- monitoring impact of tariffs on price pressures very carefully
- The gap in deficit is spending too much.
- Working on cutting spending
- The US will likely run deficits of 4-5% of GDP over the next few years.
