Bond investors forecast a hit to U.S. economic growth from multiple trade disputes, raising recession worries
President Trump has pursued tariffs and wants the Federal Reserve to cut rates. Economists are projecting that uncertainty created by the administration’s actions on the former will prompt the Fed to deliver the latter later this year.
So far, most forecasters don’t see the Fed taking action at its June 18-19 meeting, in part because they expect the central bank will want to see if global leaders can ease trade tensions, particularly at the G-20 summit in Japan later this month.
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