Federal Reserve officials cited weak global growth, slumping trade and a chill in business investment when they cut interest rates Wednesday.
One question now is how much a one quarter-percentage-point drop in borrowing costs will help businesses and cushion a broader slowdown driven by some factors outside the Fed’s control. The central bank’s policy may be an imperfect instrument if investment is being held back chiefly by concerns over tariff-fueled doubts, analysts said.
Parody Boris Johnson (BorisJohnson_MP) Tweeted: Luckily for me, everyone has forgotten about that time I said no government would be stupid enough to take us out of the Single Market. Still, best just keep it to yourselves.
Trade sanctions = Business transaction drop = less investment needed = less borrowing required. It’s quite easy to see why lower borrowing costs will not help.
Uncertainty about Fed policy strategy will be a major pothole for markets.
Trade uncertainty created by Trump. You left that part out.
Artificially lowered rates never did any good in fact.
My company could care less about the Fed rate. We can’t invest in US because Trump damage to global supply chain requires us to invest in localizing global footprints. Ie, moving American jobs overseas. Always a Trump Twitter fit away from damage to our bottom line.
A. Nope.