Article6 November 2018Reading time one minute

Trade & Tariffs - implications for the F2

The intensifying trade war will impact both US inflation and growth. How will the Federal Reserve respond?

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Trade tensions have been steadily escalating since the start of the year, culminating in the latest round of tariffs on $200bn of imports from China. The concern is that the situation could deteriorate further with China retaliation potentially opening the door to the Trump administration implementing tariffs on all Chinese imports. This is bad news for both growth and inflation.

US CPI - laundry equipment price change (YoY%)

Macrobond
Macrobond

US CPI - laundry equipment price change (YoY%)

Macrobond
Macrobond