{"id":52304,"date":"2025-08-25T08:38:23","date_gmt":"2025-08-25T12:38:23","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/economic-headwinds-and-trade-tensions-hassett-signals-fed-chair-delay-japan-post-suspends-us-services\/52304\/"},"modified":"2025-08-25T08:38:23","modified_gmt":"2025-08-25T12:38:23","slug":"economic-headwinds-and-trade-tensions-hassett-signals-fed-chair-delay-japan-post-suspends-us-services","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/economic-headwinds-and-trade-tensions-hassett-signals-fed-chair-delay-japan-post-suspends-us-services\/52304\/","title":{"rendered":"Economic Headwinds and Trade Tensions: Hassett Signals Fed Chair Delay, Japan Post Suspends US Services"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>White House Economic Adviser Kevin Hassett<\/strong> indicated that a decision on the <strong>Federal Reserve Chairman<\/strong> is expected to be delayed for <strong>several months<\/strong> and suggested it&#39;s <em>appropriate<\/em> for the Fed to consider a <strong>rate cut<\/strong>.<\/li>\n<li>The <strong>U.S. Chicago National Activity Index<\/strong> declined to <strong>-0.19<\/strong> in August, a further contraction from the previous reading of <strong>-0.10<\/strong>, signaling a slowdown in economic activity.<\/li>\n<li><strong>Japan Post<\/strong> announced the <strong>temporary suspension<\/strong> of some postal services to the <strong>United States<\/strong> starting <strong>August 27<\/strong>, citing <strong>tariffs<\/strong> and the termination of <em>de minimis<\/em> treatment.<\/li>\n<li>Hassett also expressed optimism for finalizing a <strong>trade deal with South Korea<\/strong> and confirmed that <strong>Chips Act funds<\/strong> are being distributed as scheduled, with the U.S. government&#39;s <strong>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>)<\/strong> stake noted as a special case.<\/li>\n<li><strong>German business confidence<\/strong> showed surprising strength in August, while <strong>ECB President Christine Lagarde<\/strong> commented that companies would adapt to higher U.S. tariffs, which she expects to have only a <em>slight influence<\/em> on Europe&#39;s Gross Domestic Product.<\/li>\n<\/ul>\n<p>White House Economic Adviser <strong>Kevin Hassett<\/strong> delivered several key remarks today, touching on Federal Reserve policy, trade negotiations, and industrial initiatives. Hassett stated that a decision on the next <strong>Federal Reserve Chairman<\/strong> is likely to be delayed for &quot;a few months&quot; before President <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> makes a choice, noting that it would be &quot;very difficult&quot; for Jerome Powell to rebuild good relations with <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a>. He also suggested it is <em>appropriate<\/em> for the Fed to consider a <strong>rate cut<\/strong>, and described Powell&#39;s recent presentation as &quot;sound.&quot;<\/p>\n<p>On the economic front, the <strong>U.S. Chicago National Activity Index<\/strong> registered <strong>-0.19<\/strong> in August, a further decline from the previous month&#39;s <strong>-0.10<\/strong>, indicating a contraction in economic activity. Separately, <strong>U.S. Building Permits<\/strong> for July were slightly revised to <strong>-2.2%<\/strong> from <strong>-2.8%<\/strong>, with the annual rate rising to <strong>1.362 million units<\/strong> from <strong>1.354 million units<\/strong>. The overnight financing rate also saw a slight increase, rising from <strong>4.32%<\/strong> on August 21 to <strong>4.36%<\/strong> on August 22.<\/p>\n<p>Trade relations are also in focus, with <strong>Japan Post<\/strong> announcing the <strong>temporary suspension<\/strong> of some postal services to the <strong>United States<\/strong> beginning <strong>August 27<\/strong>. This decision is attributed to <strong>tariffs<\/strong> and the termination of <em>de minimis<\/em> treatment. Meanwhile, <strong>Japan&#39;s Trade Negotiator Akazawa<\/strong> might travel to the U.S. this week, according to FNN. Hassett expressed hope that the U.S. will &quot;hopefully finalize&quot; a <strong>trade deal with South Korea<\/strong>.<\/p>\n<p>Regarding industrial policy, Hassett confirmed that funds from the <strong>Chips Act<\/strong> are being distributed as scheduled. He also commented that the U.S. government&#39;s stake in <strong>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>)<\/strong> was a &quot;special case,&quot; but indicated that more such deals are possible in the semiconductor and other industries. Hassett added that he expects Intel to improve as cash flow returns and emphasized that the government is not choosing &quot;winners or losers&quot; in any sector.<\/p>\n<p>In Europe, <strong>ECB President Christine Lagarde<\/strong> stated that companies would adapt to higher U.S. tariffs. She also suggested that these tariffs might have only a <em>slight influence<\/em> on Europe&#39;s Gross Domestic Product. Separately, <strong>business confidence in Germany<\/strong> showed surprising strength in August, with managers expressing more optimism about the coming months. In other news, <strong>Donald Trump<\/strong> is expected to sign an executive order addressing flag burning and desecration, according to Fox News.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways White House Economic Adviser Kevin Hassett indicated that a decision on the Federal Reserve Chairman is expected to 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