Bloomberg News Now: Fed Rate Cut Bets, Trump's Argentina Policy, and Global Economic Warnings

Market Update and Federal Reserve

• 📈 Stocks rose as Fed Chair Jay Powell reinforced expectations of a rate cut in October due to a weakening labor market.
• ⚠️ Powell indicated that downside risks to employment have risen and the central bank may stop shrinking its balance sheet soon.
• 📊 The ten year Treasury yield closed at 4.02% and the two year yield at 3.47%.

US-Argentina Relations and Trade Policy

• 🤝 President Trump hosted Argentinean President Javier Milei, stating the U.S. could cut aid if Argentina shifts politically.
• 🗣️ Trump emphasized that if Milei does not win his re-election bid, the U.S. will not be generous with Argentina.
• 🇨🇳 U.S. Trade Representative Jamison Greer confirmed a scheduled meeting with China's President Xi Jinping, with potential for additional tariffs on Chinese goods sooner than November 1st.

Big Banks' Earnings and Goldman Sachs

• 🏦 Major banks like Jp Morgan Chase, Goldman Sachs, Citi, and Wells Fargo reported strong earnings, largely exceeding analyst expectations.
• 🏆 Jp Morgan Chase and Citi were highlighted for their strong performance, with Goldman Sachs and Wells Fargo tied for third.
• 📉 Goldman Sachs plans to constrain headcount growth through the end of the year, though overall headcount is still expected to increase.

Global Economic Outlook and Protectionism

• 🌍 The International Monetary Fund (IMF) warns that the global economy is strained by U.S. tariffs and protectionism, dimming growth prospects.
• 📉 IMF chief economist Pierre Olivier Gourinchas noted that U.S. growth has been revised down, with a weakening labor market and persistently high inflation.
• ⚠️ The IMF sees risks tilted to the downside, with a slowdown expected in the latter half of the year and only a partial recovery in 2026.

Government Shutdown and Federal Program Cuts

• 🏛️ President Trump pledged to release a list of federal programs slated for cuts to pressure Democrats to end the government shutdown.
• ✂️ The White House has already terminated over 4000 federal workers and suspended funding for programs in Democratic-run states.

Notable Passing

• 🎤 R&B singer D'Angelo (Michael Eugene Archer), aged 51, has passed away after a battle with cancer.