SoSoMacro
Trump sends new tariff notices to 8 countries; Fed releases June FOMC minutes.
Market Performance:
Here’s today’s SoSoMacro Recap — spotlighting the key signals driving markets at this moment:
1. Tariff Developments: Trump has issued new tariff notices to eight countries, notably targeting Brazil with a surprise 50% rate. Justifications cited include the alleged unjust trial of Brazil’s former president. Markets largely view these letters as a negotiating tool. The Financial Times reports that tariffs on the EU may be set higher than those on the UK.
2. June FOMC Minutes: The Federal Reserve released minutes from its June meeting, offering no new insights on the economic or inflation outlook. Most Fed officials support rate cuts beginning after July. WSJ’s Nick Timiraos suggested that even if easing resumes, room for further cuts will be limited. Markets currently expect one cut in September, with one more cut in 2025 and three in 2026—totaling 125 basis points.
3. U.S. Treasury Auction: The U.S. Treasury auctioned $39 billion in 10-year notes, with results indicating solid demand.
