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Data: Federal Reserve Bank of St. Louis, FactSet; Chart: Andrew Witherspoon/Axios

President Trump tweeted an interesting combination of truth, non-sequiturs and lies on Tuesday involving China and the Federal Reserve.

"China is adding great stimulus to its economy while at the same time keeping interest rates low. Our Federal Reserve has incessantly lifted interest rates, even though inflation is very low, and instituted a very big dose of quantitative tightening. We have the potential to go...
"...up like a rocket if we did some lowering of rates, like one point, and some quantitative easing. Yes, we are doing very well at 3.2% GDP, but with our wonderfully low inflation, we could be setting major records &, at the same time, make our National Debt start to look small!"

Reality check: China added stimulus to its economy recently, but it's quaint compared to the military industrial and farm-aid spending added by the U.S. under Trump. China's stimulus has also come largely from the fiscal side — tax and fee cuts and looser lending standards — rather than the central bank.

  • China's central bank has reduced the reserve requirements ratio (RRR) for banks, but has not lowered its policy rate — the thing Trump is calling on the Fed to do — since October 2015. China's central bank policy rate is about 2% higher than the U.S. rate.
  • China's RRR — 14% for large institutions and 12% for small ones — even after recent cuts is significantly higher than that of the U.S. (10% and 3%).
  • The Fed raised rates in 2015 for the first time in nearly a decade and has backed off of the expected quantitative tightening it was set to engage in this year.

Go deeper: Investors loaded up on China at the start of 2019

Go deeper

5 mins ago - Science

3 dead and thousands evacuated as Northern California fires explode

A building at the Meadowood Napa Valley luxury resort burns after the Glass Fire moved through the area on September 28, 2020 in St. Helena, California. Photo: by Justin Sullivan/Getty Images

Three people have died in a wildfire in Northern California and tens of thousands were evacuated across the state, as firefighters contended with strong winds and dry conditions that saw blazes explode across the state on Monday.

Driving the news: Shasta County Sheriff Eric Magrini confirmed the deaths occurred as the Zogg Fire spread across 15,000 acres, forcing the evacuation of 1,200 people. More than for 5o,000 people, per AP.

Updated 16 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 33,273,720 — Total deaths: 1,000,555 — Total recoveries: 23,056,480Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 7,147,241 — Total deaths: 205,031 — Total recoveries: 2,794,608 — Total tests: 102,342,416Map.
  3. Business: Companies are still holding back earnings guidance.
  4. Health: Trump announces plan to distribute 150 million rapid tests —The childless vaccine.
  5. Media: Fauci: Some of what Fox News reports about COVID-19 is "outlandish"
  6. States: Cuomo extends New York moratorium on evictions until 2021.
  7. World: More than 1 million people have now died from coronavirus — India the second country after U.S. to hit 6 million cases.
Dave Lawler, author of World
34 mins ago - World

Global coronavirus death toll crosses 1 million

Data: Our World in Data; Chart: Sara Wise/Axios

The global toll of confirmed deaths from COVID-19 crossed 1 million on Monday, according to data from Johns Hopkins.

By the numbers: More than half of those deaths have come in four countries: the U.S. (204,762), Brazil (141,741), India (95,542) and Mexico (76,430). The true global death toll is likely far higher.