US Economy Teeters on the Brink as Fed Faces Pressure from Trump

The US economy is facing increasing pressure as mortgage rates may hit 7% this week. This marks a significant rise of 300 basis points compared to Canada's current rate. The country is struggling with high inflation, which has reached 3.4%, and the next report is expected to show further increases.

The Federal Reserve is under pressure to raise interest rates, but President Trump has threatened to retaliate if they do not meet his expectations. He has stated that he will halt trade with countries that have a deficit with America, including Canada, Mexico, China, and South Korea. This move could lead to a global recession within weeks or even months.

The White House is attempting to stimulate the economy through other means, including a proposed $1.2 trillion cash giveaway after the midterms and escalated bond buys to force rates down. However, these efforts are unlikely to succeed in the long term.