Another week has come and gone, and it\u2019s time to catch up on the latest economic news. Here\u2019s a quick overview of what happened over the week, from Trump\u2019s China tariff reversal to Ray Dalio\u2019s market warning.<\/p>\n
Trump\u2019s China Tariff U-Turn<\/p>\n
President Donald Trump<\/strong>\u2018s recent decisions regarding China have drawn criticism from Nobel Prize-winning economist\u00a0Paul Krugman<\/strong>. Krugman suggested that Trump\u2019s trade war with China is showing signs of weakness. The president has reduced tariffs on China and is considering allowing companies like\u00a0NVIDIA Corp.<\/strong>\u00a0(NASDAQ:NVDA<\/a>) to resume selling advanced chips to China.<\/p>\n “If this was a trade war, China won,” Krugman stated in his newsletter, as reported by\u00a0Benzinga<\/a>.<\/p>\n Read the full article\u00a0here<\/a>.<\/p>\n Trump Credits Tariffs For Strong Economy<\/p>\n The president\u2019s economic policies were under scrutiny during an interview with CBS\u2019s\u00a0Norah O\u2019Donnell<\/strong>. Trump attributed the strong economy and a \u201ctotal national security\u201d footing to his aggressive use of tariffs. He claimed that his tariff policies brought in $17 trillion in new investment to the U.S.<\/p>\n Read the full article\u00a0here<\/a>.<\/p>\n Ray Dalio Warns Fed Could Trigger \u20181999-Style Melt-Up\u2019 in Markets<\/p>\n See Also:\u00a0U.S. Small Business Lending Continues to Grow \u2013 Benzinga<\/a><\/strong><\/p>\n Billionaire investor\u00a0Ray Dalio<\/strong>\u00a0has expressed concerns about the Federal Reserve\u2019s recent policy shift. He warned that this could trigger a \u201c1999-style \u2018melt-up’\u201d in financial assets. Dalio believes that the Fed is \u201cfueling a bubble, not fighting a bust,\u201d which is a significant departure from its historical role in responding to crises.<\/p>\n Read the full article\u00a0here<\/a>.<\/p>\n Goldman Sachs Warns Shutdown Could Slash Q4 2025 GDP Growth To 1%<\/p>\n The U.S. government shutdown, now in its 33rd day, is expected to end soon. However, the economic damage is already evident. Goldman Sachs<\/strong> economist\u00a0Alec Phillips<\/strong>\u00a0predicts that the standoff will cost the U.S. economy more than a full percentage point of growth in the final quarter of 2025, reducing GDP growth to just 1.0%.<\/p>\n