A US-China trade agreement could prompt a short-term positive market reaction, but the US economy is predicted to continuously slow down, with rising inflation and unemployment, eventually forcing the Federal Reserve to cut interest rates.
"Even if the US does sign or come to an agreement with China, I do believe that for a short period of time, the market can react in a positive way. But as soon as data begins to support that our economy is continuously slowing down... Once we see that inflation is going up, unemployment is going up, then yes, it will be at that point a ticking time bomb for the Trump administration and the Federal Reserve to start cutting interest rates because then at that point, every economic report should be able to show and support the case that our economy is slowing down."
