News analysis

Fed's interest-rate cut helps Trump wage his trade war

The President's aggressive and unpredictable global trade overhaul has placed the Federal Reserve in an unfamiliar position.PHOTO: REUTERS

Federal Reserve chairman Jerome Powell may not have wanted to cut interest rates. But in the end, President Donald Trump appears to have given him no choice.

Amid increasing signs that the global economy is slowing, Mr Powell on Wednesday announced a quarter-percentage-point reduction in the cost of money.

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A version of this article appeared in the print edition of The Straits Times on August 02, 2019, with the headline 'Fed's interest-rate cut helps Trump wage his trade war'. Subscribe