First, Powell didn't cave ... he just got more specific ....
rates “remain just below the broad range of estimates of the level that would be neutral for the economy.”
just below the BROAD range, my emphasis
to me suggests well below the middle of that range
and even further below the upper end of that range
so rates are STILL BELOW levels that even the LEAST aggressive hiking of rates that Fed doves would support
Second ... USA is the world's largest consumer market. ROW exporters including China take US wholesale prices as given, and accept whatever prices they can receive, as long as they can make the sale. They do not surrender market share over price.
Which means Chinese exporters eat the tariffs (as lower profits). Landed US import prices (inclusive of duties) probably haven't changed much. Chinese share prices have.
Edited by pedro, 29 November 2018 - 09:27 AM.