Large US trade imbalance and the Fed’s tightening

The US external trade is weakening rapidly. Its deficit has never been so important (measured in real terms and ex oil trade). Imports have a strong momentum. It reflects the White House fiscal strategy and it is done at the expense of American citizens. Not the good strategy. This large imbalance is also a good reason for the Fed to maintain its tightening bias in order to limit the domestic demand momentum. Powell has spoken many times of the non sustainable fiscal policy of the White House. This trade imbalance is just an illustration of it.

comexUS-octo2018-en
comexUSdecompoct18-en.png

The US proposal to UK for a trade agreement

The UK government has jumped on the trade agreement proposal made by the US Président-Elect.
But what for? The bilateral trade balance is a surplus for the UK as is shown in the graph below. What is the idea behind the US proposal? A more balanced trade partnership with higher UK imports? IS the UK ready for that and is it its interest? Weird
uk-2016-november-tradebalanceUKUS.png