Key Takeaways
- Mexico is preparing to implement tariffs on imports from countries without trade agreements, notably China, as part of its 2026 budget proposal, a move influenced by U.S. pressure and aimed at protecting domestic industries.
- Stephen Miran, President Trump's nominee for the Federal Reserve Board of Governors, has articulated strong critiques of the Fed's past and present policies, including attributing 1970s inflation to Fed errors and questioning the "transitory" inflation narrative.
- The Atlanta Fed's GDPNow model maintains its Q3 2025 real GDP growth estimate at 3.0%, a slight decrease from an earlier 3.5% forecast in late August.
- China has reiterated its commitment to strengthening collaboration with Brazil within the BRICS framework, aiming to resist unilateralism and promote multilateral trade.
- US lawmakers have sent a letter to CVS Health (CVS) regarding the alleged use of confidential patient information for lobbying purposes in Louisiana.
Trade Policy Shifts: Mexico and BRICS Dynamics
Mexican President Claudia Sheinbaum's administration is considering imposing tariffs on imports from countries without trade agreements, including China, as part of its 2026 budget proposal, which is expected to be submitted to Congress by September 8. This move is largely influenced by U.S. pressure to curb the inflow of Chinese goods and protect Mexico's domestic manufacturing industries, particularly in sectors like automobiles, textiles, and plastics. Mexican officials have previously floated the concept of a "Fortress North America" framework to strengthen regional supply chains and limit Chinese imports.
Meanwhile, China has reaffirmed its commitment to enhancing collaboration with Brazil within the BRICS bloc of emerging economies. Chinese Foreign Minister Wang Yi emphasized a readiness to work with Brazil and other BRICS nations to resist unilateralism and bullying acts, safeguard the legitimate rights of developing countries, and promote reforms in the global governance system. Brazil, currently holding the BRICS presidency, is also considering retaliatory trade measures against the U.S. following President Donald Trump's imposition of 50% tariffs on various Brazilian goods.
Federal Reserve Under Scrutiny: Miran's Economic Views
Stephen Miran, President Trump's nominee for the Federal Reserve Board of Governors, is undergoing Senate confirmation hearings, where his views on monetary policy and Fed independence are being closely examined. Miran, currently the chair of the White House Council of Economic Advisers, has stated that the independence of monetary policy is "critical for its success" and pledged to preserve it. However, he has previously advocated for increasing presidential control over the Fed Board and shortening members' terms, raising concerns among some lawmakers about the central bank's autonomy.
Miran has been a vocal critic of past Fed actions, asserting that 1970s inflation was primarily due to Federal Reserve mistakes and supply disruptions, specifically citing the Fed's confusion between nominal and real interest rates. He also claims that his inflation perspective is not solely based on monetary policy. Additionally, Miran has stated it was "not wise for the Federal Reserve Chair to say inflation was transitory" and believes it is not appropriate for the Fed to support one fiscal plan over another. He has also raised concerns about the Bureau of Labor Statistics data quality, citing a lack of corrections and a drop in response rates.
Economic Indicators and Corporate Oversight
The Atlanta Fed's GDPNow model for Q3 2025 real GDP growth currently stands at 3.0% as of September 2, holding steady from its previous estimate. This figure represents a slight decrease from an earlier August 29 forecast of 3.5%, primarily due to declines in the nowcasts for third-quarter real personal consumption expenditures growth and real gross private domestic investment growth.
In corporate news, US lawmakers have sent a letter to CVS Health (CVS) concerning the alleged use of confidential patient information to lobby the Louisiana State Legislature. The inquiry focuses on reports that CVS Health utilized patient data to influence opinions on House Bill 358, which would prohibit providers from operating both Pharmacy Benefit Managers (PBMs) and individual pharmacies simultaneously. Lawmakers are requesting documents and communications related to CVS Health's use of patient information for lobbying in Louisiana and other states since January 1, 2020.
Separately, the Trump Administration has declared it will not enforce a plan to make airlines compensate passengers for flight disruptions. This decision follows a previous Biden-era rule that aimed to increase compensation for issues like lost luggage or overbooked flights, a measure that major U.S. airlines had urged the Trump administration to abandon.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.