Mission Accomplished Rate Cut Odds Surge After Tariff Announcement Just As Trump Wanted

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Just about everybody agrees that Trumps trade war is contributing at least somewhat to the uneasiness though its hard to say precisely how much. When the Federal Reserve cut interest rates on Wednesday Chairman Jerome Powell emphasized that the central bank was doing it in part to make sure that Trumps trade war didnt accidentally capsize the economy. his public comments about how the chinese are supposedly paying the tariffs. has nothing to lose from a trade war would suggest as much. If increasing tariffs leads the Fed to cut rates and devalue the dollar as a result its basically a two one strike against Beijing. If Trumps trade war had any thoughtful strategy or obvious path to success one might even be tempted to call this a canny move. Earlier today the Bloomberg authors concluded. As Goldman which earlier today stepped up to lead the hawkish Fed #resistance effort against gratuitous Fed rate cuts in our view. Additionally the announcement tilts the risks toward deeper cuts. And so once again Trump is about to get his way

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