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Another week has come and gone, and it’s time to catch up on the latest economic news. Here’s a quick overview of what happened over the week, from Trump’s China tariff reversal to Ray Dalio’s market warning. Trump’s China Tariff U-Turn President Donald Trump‘s recent decisions regarding China have drawn criticism from Nobel Prize-winning economist Paul Krugman. Krugman suggested that Trump’s trade war with China is showing signs of weakness. The president has reduced tariffs on China and is considering allowing companies like NVIDIA Corp. (NASDAQ:NVDA) to resume selling advanced chips to China. "If this was a trade war, China won," Krugman stated in his newsletter, as reported by Benzinga. Read the full article here. Trump Credits Tariffs For Strong Economy The president’s economic policies were under scrutiny during an interview with CBS’s Norah O’Donnell. Trump attributed the strong economy and a “total national security” footing to his aggressive use of tariffs. He claimed that his tariff policies brought in $17 trillion in new investment to the U.S. Read the full article here. Ray Dalio Warns Fed Could Trigger ‘1999-Style Melt-Up’ in Markets See Also: U.S. Small Business Lending Continues to Grow – Benzinga Billionaire investor Ray Dalio has expressed concerns about the Federal Reserve’s recent policy shift. He warned that this could trigger a “1999-style ‘melt-up'” in financial assets. Dalio believes that the Fed is “fueling a bubble, not fighting a bust,” which is a significant departure from its historical role in responding to crises. Read the full article here. Goldman Sachs Warns Shutdown Could Slash Q4 2025 GDP Growth To 1% The U.S. government shutdown, now in its 33rd day, is expected to end soon. However, the economic damage is already evident. Goldman Sachs economist Alec Phillips predicts 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%. Read the full article here. Peter Schiff Says Supreme Court Review Of Trump Tariffs Could Play To The President's Advantage Economist Peter Schiff believes that the Supreme Court’s scrutiny of President Trump’s trade and tariff policies could work in Trump’s favor. If the court rules against the unconstitutional “Liberation Day” tariffs, it would provide Trump with “another scapegoat for the recession,” Schiff suggested. Read the full article here. Read Next: The Good, The Bad, And The Ugly Of The AI Capex Race – Benzinga Photo: Shutterstock
