The China-US trade war is overshadowed, and the US Federal Reserve has opened officials for the first time. It is expected that the authorities will soon need to cut interest rates. Federal Reserve Chairman Jerome Powell said the authorities are closely monitoring the development of various US trade issues and will take appropriate measures to maintain economic expansion.
When is it difficult to resolve the trade dispute?
When attending the event in Chicago, Powell said that it is difficult to predict when and how the US trade issues will be resolved but will examine its impact on the economic outlook and make appropriate measures. In his speech, he also pointed out that low-interest rates have become a major challenge in contemporary monetary policy. In the future, US interest rates will inevitably fall into the low range, calling on the public and the central bank to face up to the problem.
US Treasury yields have weakened, and US President Donald Trump announced that tariffs on imports from Mexico will be imposed, allowing the market to wait and see if the US will cut interest rates this year. US St. Louis Reserve Bank President James Bullard said yesterday that in order to cope with the economic risks brought about by the trade war, the Fed may need to cut interest rates to push up inflation, the first Fed officials to cut interest rates.