Although presidents Donald Trump and Xi Jinping called a truce in the trade war when they met at the G20 Summit in Osaka in late June, a truce is not a settlement. A US rate cut could be construed as the Federal Reserve’s attempt to tidy up the mess left by Trump’s trade policies. Photo: Reuters Although presidents Donald Trump and Xi Jinping called a truce in the trade war when they met at the G20 Summit in Osaka in late June, a truce is not a settlement. A US rate cut could be construed as the Federal Reserve’s attempt to tidy up the mess left by Trump’s trade policies. Photo: Reuters
Although presidents Donald Trump and Xi Jinping called a truce in the trade war when they met at the G20 Summit in Osaka in late June, a truce is not a settlement. A US rate cut could be construed as the Federal Reserve’s attempt to tidy up the mess left by Trump’s trade policies. Photo: Reuters
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

The Fed has no real reason to cut rates, unless it’s to save the US economy from Donald Trump’s tariffs

  • The Federal Reserve’s signalling of a rate cut is out of the ordinary, given the strength of US economic data. Are Trump’s trade war and tariffs doing that much damage to the US economy?

Although presidents Donald Trump and Xi Jinping called a truce in the trade war when they met at the G20 Summit in Osaka in late June, a truce is not a settlement. A US rate cut could be construed as the Federal Reserve’s attempt to tidy up the mess left by Trump’s trade policies. Photo: Reuters Although presidents Donald Trump and Xi Jinping called a truce in the trade war when they met at the G20 Summit in Osaka in late June, a truce is not a settlement. A US rate cut could be construed as the Federal Reserve’s attempt to tidy up the mess left by Trump’s trade policies. Photo: Reuters
Although presidents Donald Trump and Xi Jinping called a truce in the trade war when they met at the G20 Summit in Osaka in late June, a truce is not a settlement. A US rate cut could be construed as the Federal Reserve’s attempt to tidy up the mess left by Trump’s trade policies. Photo: Reuters
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Neal Kimberley

Neal Kimberley

UK-based Neal Kimberley has been active in the financial markets since 1985. Having worked in sales and trading in the dealing rooms of major banks in London for many years, he moved to ThomsonReuters in 2009 to provide market analysis. He has been contributing to the Post since 2015 and writes about macroeconomics from a market perspective, with a particular emphasis on currencies and interest rates.