Economic Affairs

It's the tariffs, not the Fed

ST's Asian Insider aims to ask the unanswered questions and seek the difficult answers - exploring global issues from an Asian perspective. Episode 2 discusses the ongoing trade war between the United States and China.

The US Fed can't contain the fallout from the trade war

More tariffs mean more and bigger interest rate cuts by the US Federal Reserve. More rate cuts mean the US economy gets stronger and the stock market goes higher.

That would appear to be what United States President Donald Trump is betting on as the US election year draws nearer. But this script is unlikely to play out.

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A version of this article appeared in the print edition of The Straits Times on August 28, 2019, with the headline 'It's the tariffs, not the Fed'. Print Edition | Subscribe