News analysis

Any rate cut by Fed may spur Trump to pile on more tariffs

CHICAGO • US President Donald Trump has pummelled the Federal Reserve with insults in recent months, calling it "crazy" and blaming it for any stock market dives or ugly economic data. But now he has thrust the fate of the economy into the hands of the organisation - and the man - he has suggested he doesn't trust.

Fed chairman Jerome Powell and other central bank officials have signalled this week that they may have to cut interest rates in the coming months to keep the economic expansion going - and counter any economic harm from Mr Trump's escalating trade war.

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A version of this article appeared in the print edition of The Straits Times on June 08, 2019, with the headline 'Any rate cut by Fed may spur Trump to pile on more tariffs'. Print Edition | Subscribe