Top Overnight News US and China agree to bring down reciprocal tariffs by 115% for 90 days, sparking immediate risk on price action; DXY, ES, Crude bid; XAU & Fixed hit US President Trump said there was a very good meeting with China on Saturday and many things were discussed and much agreed to, while he stated a total reset was negotiated in a friendly but constructive manner. Trump also said great progress was made and they want to see for the good of both China and the US, an opening up of China to American business. USTR Greer said differences are not as great as previously thought, and Treasury Secretary Bessent said he looks forward to sharing details on Monday morning. Chinese Vice Premier He Lifeng said trade talks were constructive and they made substantive progress, while both sides reached an important consensus and agreed to establish a China-US trade consultation mechanism with a joint statement to be issued on May 12th. Furthermore, He said the atmosphere was candid, in-depth and constructive, and noted that the nature of relations is mutual win-win, and they are going to provide more certainty and stability in the world economy. Chinese Vice Commerce Minister Li Chenggang said any deal to be reached will be in China’s development interest and that they reached an important consensus with the two sides to have regular contact, while Li added that they are not in a position to release more substance on what they agreed on and declined to answer when asked about the timing of the statement but said it will be good news for the world. US President Trump’s administration opened a Section 232 investigation on whether imports of aircraft, engines and components are a threat to national security, while the Commerce Department is also investigating the impact of imported medium-duty and heavy-duty trucks on national security. White House Economic Adviser Hassett said the Chinese are ‘very, very eager’ to engage in trade talks and rebalance trade relations with the US, while he added that more trade deals could be coming as soon as this week. Furthermore, he said Commerce Secretary Lutnick briefed him about 24 deals that Lutnick and USTR Greer are working on, according to Fox News Sunday Morning Futures. US President Trump is reportedly seeking USD 1tln in deals during his Gulf trip. The Qataris are also expected to announce USD 200-300bln in deals and investments, including a "huge" commercial aircraft deal with Boeing (BA) and a USD 2bln deal to purchase MQ-9 Reaper drones, according to a source: according to Axios. US President Trump posted on Truth Social “IN JUST THREE MONTHS, TRILLIONS OF DOLLARS (and therefore, record numbers of JOBS!) HAVE BEEN POURING INTO THE USA. THIS IS BECAUSE OF MY TARIFF POLICY, and our great November 5th Election WIN!”. US President Trump posted that his next TRUTH will be one of the most important and impactful he has ever issued and later posted that he will sign an executive order on Monday at 09:00EDT with prescription drug and pharmaceutical prices to be reduced almost immediately by 30%-80% and the US is to pay the same price as the nation that pays the lowest price anywhere in the world." Fed’s Cook (voter) said a less productive economy could need higher interest rates to contain inflation and that tariff policies could lower productivity, limit potential output and increase inflationary pressure, while Cook said less investment and higher costs could lower the economy’s potential output. Fed’s Musalem (2025 voter) said economic activity has moderated and sentiment has declined, while he added that they should not commit to rate cuts until the impact of tariffs on inflation becomes clear and rate cuts are still possible if increased inflation proves short-lived, expectations remain anchored, and the economy becomes meaningfully weaker. Fed’s Hammack (2026 voter) said on Friday that it is reasonable to take a wait and see approach and she would rather be slow and move in the right direction than be fast and wrong, while she said they will be ready to move on rates when there is clear and convincing evidence. Furthermore, she would like to be pre-emptive and action-oriented when possible, but noted it is hard given uncertainty over tariffs and other policies. US Treasury Secretary Bessent urged Congress to raise the debt limit by mid-July and expects the debt limit to be hit in August. Punchbowl Reports that US Clean energy tax credits from the Inflation Reduction Act are in for a massive overhaul as part of the GOP tax bill.