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Trade Concerns Could Impact the Fed’s Meeting

Annie Gilroy
Trade Concerns Could Impact the Fed’s Meeting

The Fed has addressed trade disputes on many occasions. In the Fed’s latest policy minutes, the committee sounded concerned about ongoing trade disputes and the possibility of the disputes escalating. According to the meeting minutes, most Fed members “expressed the view that an escalation in international trade disputes was a potentially consequential downside risk for real activity.” The Fed was also concerned about how the uncertainty regarding trade policy led to a reduction and delays in business investment spending while putting pressure on input prices.