Minneapolis Fed president Kashkari: Monetary policy is not the right tool to respond to a trade war, but it is the only tool that we have

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11 October 2019

Minneapolis Fed president Kashkari: Monetary policy is not the right tool to respond to a trade war, but it is the only tool that we have

There is more slack in the labour market
Wage growth is still tepid
Not the time to tap the brakes on the economy
Extended trade war could lower neutral rate further
We can't model the shock a trade war will have on psychology and how it is going to ripple through to the economy

Germany's government lowers 2020 GDP growth forecast to 1.1% from 1.5% - Der Spiegel

Risks of financial decoupling between China and U.S. rising – ANZ

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