Fed’s Patience Tested as Trade Spat Clouds Growth Outlook
The Wall Street Journal | Thu, May 30, 2019
by Nick Timiraos
The recent escalation of the U.S. trade dispute with China is putting the Federal Reserve in a bind and complicates its make-no-moves policy posture.
Officials see trade tensions as a rising risk to the U.S. expansion that complicates their current make-no-moves policy posture, and bond investors are increasingly betting that economic weakness will lead the central bank to cut interest rates to bolster the economy.