Economists believe the US will skirt a recession as lower tariffs than initially announced by the Trump administration are set to handicap consumer spending less than previously feared.

Chinese banks extended 280 billion yuan ($38.87 billion) in new yuan loans in April, below analysts' forecasts and plummeting from March's 3.64 trillion yuan, according to Reuters calculations based on data released by the People's Bank of China.

Fed Governor Adriana Kugler still thinks the economy is likely headed for lower growth and sticky inflation amid tariff volatility.

The work to get inflation under control and the Fed's rate-setting predicament are among the challenges ahead.

The agreement reached this weekend is an acknowledgment that a full-on economic divorce of the U.S. and China would be too painful for both sides.

The U.S.-China tariff truce creates short-term relief but long-term uncertainty. Companies are racing to adapt supply chains, while consumers continue to absorb elevated costs during the 90-day pause.

The relationship reset steers the U.S. economy back on a more familiar path as the major consumer of goods. It also lowers the risk of recession, economists say.

China has overtaken the U.S. in net favorability and enjoys far more support across the globe, according to a new report.

The president has backtracked repeatedly on his tariff policies, creating a whiplash with downsides and few clear benefits so far.