U.S. Treasury Secretary Yellen Says We Do Not Wish To Disengage With China Economically But There Should Be An Even Playing Field; Any Action U.S. Takes Should Be Targeted And Not Broad Based; Hopefully We Will Not See A Significant Chinese Response But That Is Always A Possibility; Tax Revenues Should Be Used To Lower The Deficit
Portfolio Pulse from Benzinga Newsdesk
U.S. Treasury Secretary Yellen emphasized the importance of maintaining economic engagement with China, advocating for an even playing field and targeted U.S. actions rather than broad measures. She acknowledged the possibility of a significant Chinese response and highlighted the use of tax revenues to reduce the deficit.
May 13, 2024 | 2:26 pm
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NEGATIVE IMPACT
Remarks by Yellen on targeted U.S. actions and the potential for a significant Chinese response could introduce volatility to the SPDR S&P 500 ETF Trust (SPY), reflecting broader market concerns over U.S.-China economic relations.
The SPY ETF, which tracks the S&P 500, could see short-term volatility due to uncertainties in U.S.-China relations highlighted by Yellen. Targeted actions and the possibility of Chinese retaliation could affect market sentiment.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 65
NEUTRAL IMPACT
Yellen's comments on maintaining economic engagement with China and advocating for an even playing field may have a stabilizing effect on the iShares China Large-Cap ETF (FXI), as it suggests a cautious approach to U.S.-China economic policies.
Yellen's remarks indicate a desire to maintain economic ties with China, which could prevent drastic policy shifts that might negatively impact Chinese large-cap companies represented in FXI. However, the mention of possible Chinese responses adds uncertainty.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 75