Trump vs Harris

They are divided over Trump's tariffs

Harris criticized Trump's proposal to impose tariffs of 10% to 20% on all imports, saying she likes to call it "Trump's sales tax" - similar to comments made by President Joe Biden in early July. She cited an estimate that his tariffs could increase annual expenses for American families by about $4,000.

Trump responded by saying, "I don't have a sales tax. That's not true." The former president also said Americans would not face higher prices because of the tariffs, but rather that China and other countries "that have been ripping us off for years" would bear the cost.


PolitiFact, a fact-checking organization at the Poynter Institute, noted that the claim, which Trump has repeatedly made, is not true because buyers typically pay tariffs when purchasing goods.


They discussed hydraulic fracturing and oil production

Asked about her change in stance on supporting a fracking ban, Harris said: "Let's talk about fracking because we're in Pennsylvania now." She said she stopped supporting a fracking ban in 2020 split, noting that the Biden-Harris administration has seen significant growth in U.S. domestic oil production.


Trump essentially said voters shouldn't trust Harris's stance in this area. "If she wins the election, fracking in Pennsylvania will be stopped on day one," he said.


He added: "If she wins, the day after the election, they will resume destroying our country and oil will end. Fossil fuels will die."


They promised tax cuts and tax credits

Trump has described himself as "an open book."


“Everybody knows what I would do — cut taxes dramatically and create a great economy like we had before,” he said. “We had the best economy. And then we got hit with this.”


Trump's signature legislative achievement during his presidency was the 2017 tax cut bill, which boosted corporate profits and drove stocks to record highs. As MarketWatch reported, Trump proposed lowering the corporate tax rate to 15%, but recently changed it to apply only to "companies that make products in the United States," confusing tax policy experts.


Harris mentioned her plan to expand the Child Tax Credit (CTC) to provide a $6,000 credit to families with children under 1. Trump's running mate, J.D. Vance, has also proposed a plan to increase the Child Tax Credit.


Additionally, the Democratic candidate highlighted her plan to increase federal tax incentives for small business startup expenses from $5,000 to $50,000.


No focus on social security

Ahead of the debate, a MarketWatch op-ed noted that Americans who rely on Social Security and Medicare deserve a clear explanation from the next president about how to preserve those programs, since we may only have a few years left before facing major cuts.

Yet Social Security and Medicare were barely mentioned by the debate moderators and the two candidates.


Bitcoin Slides During Debate

A cryptocurrency exchange executive has predicted that crypto markets could gain support if Trump performs better in the debates, as the Republican candidate has been more outspoken in support of the industry.


The largest virtual currency, bitcoin, lost some ground during the debate. It was trading above $57,600 before the debate but fell below $56,800 after the event, according to FactSet data.

CPI is coming


As the Federal Reserve's September policy meeting approaches, Wall Street is closely watching the upcoming inflation data, hoping that these data will provide clues for the Fed's decision to cut interest rates. Although the current inflation readings show some easing trends, the sluggish labor market has added to the

The news has heightened market concerns about an economic slowdown and could affect the extent of the Fed's interest rate cuts.


Fed Chairman Powell indicated at the Jackson Hole Economic Symposium in August that the Fed may cut interest rates at its September meeting. However, the market is still divided on the specific extent of the rate cut. Some market participants believe that the Fed may choose to cut interest rates by 25 basis points, but some analysts say that a 50 basis point rate cut is not impossible. According to CME's FedWatch tool, the market currently expects a 70% probability of a 25 basis point rate cut, while the probability of a 50 basis point rate cut is about 30%.


The upcoming release of the Consumer Price Index (CPI) for August will be a key data influencing the Fed's decision. The CPI is expected to rise by 0.2%, bringing the annual inflation rate down to 2.6% from 2.9% in July. If the CPI data is lower than expected, it may prompt the Fed to take a more substantial interest rate cut.


Still, the continued weakness in the labor market remains a focus of market attention. While the U.S. economy is still adding jobs every month, the downward revision to the employment report suggests that the actual conditions in the labor market may be more severe than expected. This has raised questions among investors about whether the Federal Reserve has turned to rate cuts too late.


Looking ahead, the market expects that the Fed may cut interest rates by a cumulative 2.5% by the end of 2025. However, uncertainty in the labor market will remain a key factor affecting the direction of policy. Investors should pay close attention to upcoming economic data to judge the extent of the Fed's interest rate cuts and their impact on the market.