Manufacturing Slump Despite Kamala Harris's Claims

Despite Kamala Harris's claims of a manufacturing boom, the sector is actually in a serious slump, with the ISM reporting contraction for four straight months. The S&P Global PMI also recorded a deterioration in business conditions, with new orders declining and hiring slowing. Although the Biden-Harris administration's subsidies and tax breaks have led to increased construction spending, job growth has been primarily in construction, not in manufacturing.

U.S. Economy Growth in May

The U.S. economy showed significant growth in May, with the services sector performing well and the manufacturing sector facing challenges. Despite inflation concerns, the economy is expected to continue growing, reducing the need for rate cuts. The Federal Reserve faces pressure to maintain rates despite calls for cuts.

Economic Analysis and Federal Reserve Policy

Economic data shows a strong labor market and low jobless claims, suggesting no imminent interest rate cuts. Atlanta Fed President Bostic supports this view. Leading economic indicators fell in March, but manufacturing sector is expanding. Mortgage rates rose to 7.5%, leading to increased applications despite low inventory.

Meeting between Treasury Secretary Janet Yellen and Chinese Officials

Treasury Secretary Janet Yellen is meeting with Chinese officials to discuss overcapacity concerns, market-oriented reforms, and economic relationships between the U.S. and China.