Fed Officials Express Optimism About Receding Trade Tensions and Their Effect on US Economic Growth

Fed policymakers are turning cautiously optimistic about the receding trade tensions and their positive impact on the US economy in the near

Fed Officials Express Optimism About Receding Trade Tensions and Their Effect on US Economic Growth

Fed policymakers are turning cautiously optimistic about the receding trade tensions and their positive impact on the US economy in the near future. Fed officials express hope that the upcoming phase one deal between the US and China and the ratification of the USMCA trade agreement could boost economic growth in the US in 2020.

St. Louis Fed President James Bullard, Fed Vice Chair Richard Clarida and Chicago Fed President Charles Evans were among the officials who made such statements in their speeches recently. While the partial trade deal may not fully resolve the trade war between the US and China, it is a step in the right direction, and could encourage growth and business investment this year.

In a speech at a forum in New York, Clarida stated, “There are some indications that headwinds to global growth may be beginning to abate”. He also talked about the Fed’s decision to cut interest rates thrice in 2018 and how this move has helped support economic growth in the US.

These comments support the Fed’s view of keeping interest rates on hold for some time to come, following the three rate cuts that took place late last year. Chicago Fed President Evans has already hinted hat the Fed could hold interest rates steady between 1.50% and 1.75% for 2020.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Federal Reserve Chair Jerome Powell has sounded the alarm on a potential trade standstill reminiscent of the pandemic era — a scenario...
6 days ago

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers