Federal Reserve officials have said there is “considerable uncertainty” surrounding US President Donald Trump’s trade policy and warned that the declining perception of “safe-haven status” for US assets could have “long-lasting implications” on the economy.
According to the minutes of their May meeting released on Wednesday (28 May), central bank officials noted "the large amount of uncertainty surrounding trade policy and other economic policies" and argued that "vulnerabilities to the financial system…warranted monitoring". "Significant uncertainties also surrounded changes in fiscal, regulatory, and immigration policies and their economic effects. Taken together, participants saw the uncertainty about their economic outlooks as unusually elevated," the minutes read. Uncertainty from Trump's trade war pulls a break on May's Fed rate cu...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
