Trump and Jerome Powell. Photo: Drew Angerer/Getty Images

President Trump on Tuesday renewed his attacks on the Federal Reserve and Chairman Jay Powell, after a key U.S. manufacturing gauge signaled the second consecutive month of sector-wide contraction.

"As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!"

Driving the news: The ISM U.S. manufacturing Purchasing Managers’ Index fell from 49.1 in August to 47.8 in September, CNBC reports. Any reading below 50 is considered a contraction, with Tuesday's figure marking the lowest reading since June 2009.

  • ISM Chairman Timothy Fiore said in a statement: "Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth."

The big picture: As Trump's trade war with China continues with no end in sight, the manufacturing sectors of the two countries are moving in opposite directions, Axios' Dion Rabouin notes.

  • On Monday, China's Caixin purchasing managers' index, a private survey of the country’s manufacturing activity, had its strongest reading since February 2018.
  • Meanwhile, the Chicago Business Barometer, which tracks Midwestern business activity steered mainly by trade and manufacturing, fell back into contraction in September.
  • The ISM reading adds yet another data point to concerns that a recession may be on the horizon.

Go deeper: The state of play in the manufacturing trade war

Go deeper

Updated 12 mins ago - World

In photos: Unrest in Italy as coronavirus restrictions grow across Europe

An anti-government demonstration in Turin, Italy, where luxury stores were "ransacked," on Oct. 26, the Guardian reports. Photo: Diego Puletto/Getty Images

Protests in Italy against fresh coronavirus pandemic restrictions that came into effect Monday descended into violence in Milan and and Turin, with police using tear gas to disperse demonstrators, per the Guardian.

The big picture: The demonstrations in cities still reeling from Italy's first lockdown against the economic consequences of the new measures mark some of the biggest resistance seen yet to restrictions returning in Europe, as the continent faces a second coronavirus wave. From Denmark to Romania, this is what's been happening, in photos.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: The swing states where the pandemic is raging — Pence no longer expected to attend Barrett confirmation vote after COVID exposure.
  2. Health: 13 states set single-day case records last week
  3. Business: Where stimulus is needed most.
  4. Education: The dangerous instability of school re-openings.
  5. States: Nearly two dozen Minnesota COVID cases traced to 3 Trump campaign events
  6. World: Restrictions grow across Europe.
  7. Media: Fox News president and several hosts advised to quarantine.

Republicans and Dems react to Coney Barrett's Supreme Court confirmation

President Trump stands with Judge Amy Coney Barrett after she took the constitutional oath to serve as a Supreme Court justice during a White House ceremony Monday night .Photo: Tasos Katopodis/Getty Images)

President Trump said Judge Amy Coney Barrett's Senate confirmation to the Supreme Court and her subsequent taking of the constitutional oath Monday was a "momentous day," as she she vowed to serve "without any fear or favour."

  • But as Republicans applauded the third conservative justice in four years, many Democrats including Speaker Nancy Pelosi (Calif.) warned of consequences to the rush to replace the late Justice Ruth Bader Ginsburg ahead of the Nov. 3 election, with progressives leading calls to expand the court.