The extraordinarily economic rosy scenario in the Fed statement was the result of 2 aspects: Tax cuts and severe reduction in Regulations. Regulations pertain to 225 pages and 5620 Regulations. Trump mentioned in the campaign BUY America and this is the point where regulatory cuts began. BUY America resulted in a Regulation to only American construction material is accepted in all Federal government construction contracts. The Buy America is as the phrase states, America for America.
The Economic Development Administration within the Commerce Department began the long review of Regulations for the purpose to eliminate agencies, cut government budget and size, eliminate Regulatory duplications, eliminate business regulatory burdens and streamline Government Grants for faster approvals. Most interesting is for the Federal government to work closely with the states to ensure Federal monies reach the states much quicker.
One example is the EDA is working with states to clean inner cities against the burdens of crime for the purpose to build and or rebuild for investment purposes sections of inner cities that became war zones. Further is Trump’s Infrastructure plan to rebuild roads, highways and byways, tunnels, bridges. Only $200 billion is slated for Fed government expenditures to the states so states may enter in Public Private / partnerships in an overall $1 trillion infrastructure plan. The Fed government in this instance provides the initial capital and the states decide their own methods.
By regulatory reduction of fees to the United Motor Carrier Association, enhanced economic activity will be seen in transportaion of goods by motor carriers, truckers, Freight brokers, freight forwarders and leasing companies.
Under the Veterans Administration, regulatory burdens were reduced for all workers assigned to military veterans from Home Health Aides to hospitals.
Trump is working agency to agency to eliminate all regulatory burdens. In the last 90 days, 5509 regulations were eliminated while so far 892 Regs are scheduled for elimination in the next 90 days.
After the Economic Development Administraion completes its recommendations, the agency is slated for elimination.
Under the International Trade Administration in the Commerce Department, India, South Korea and Taiwan were found to illegally dump below fair market prices polyester Staple Fibers. China is selling Stainless Steel sinks under fair market value. Countrvailing Duties were placed on Argentina and Indonesia for Dumping biodiesel fuels. Nations in unfair trade practices are targets for fees and fines.
Once a regulation is enforced or eliminated, only a vote by Congress under the 1996 Congressional Review Act can stop or revisit a regulation. Current Democrats fail in majorities to even consider a vote therefore Trump has a free hand in regulatory reforms. More will be written in days ahead on further regulations.
EUR/USD Break points 1.1999 and above 1.2109.
USD/JPY break points 112.75 and 112.46.
GBP/JPY remember 153’s?. Break point is now 153.14.
AUD/USD break points 0.7842, 0.7941 and 0.8008.