Fed’s Patience Tested as Trade Spat Clouds Growth Outlook

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The Wall Street Journal  | Thu, May 30, 2019

by Nick Timiraos

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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.

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