Economists Doubt Trade Deal Within 90-Days

Written by Staff Writer

handshake 2056021 640Economists doubt trade cease-fire will lead to actual deal -CNBC
"Wall Street traders may be exuberant on Monday over the decision to postpone the trade war between the U.S. and China, but economists across the marketplace aren't convinced the delay lead to a permanent solution. It will still be 'challenging' to find a compromise that all parties like, Goldman Sachs economist Alec Phillips wrote in a note to clients Sunday.

'We would expect an initial positive market reaction, the 'pause' prolongs the period of uncertainty around the eventual structure of trade relations between the two countries,' Phillips wrote. 'The specter of higher and broader U.S. tariffs remains, and the underlying issues clouding the trade relationship are deferred to further negotiations...we think the chance of a comprehensive deal that involves rollback of tariffs is slightly higher than before, but still not our base case - perhaps a 20 percent probability over the next three months,' the economist wrote."