The Fed sends a signal of relief to Argentina in the middle of the American battle. with China

WASHINGTON. – The US Federal Reserve (the Fed, in jargon) has given the clearest signal that, if any, will displace its cards and reduce its interest rate to protect the expansion of the Economy of the trade war between Washington and Beijing released by the president,

Donald Trump

, still unresolved.

Fed Chairman Jerome Powell suggested in a Chicago speech that the US central bank could change its monetary policy and reduce the benchmark interest rate – a sensitive variable for Argentina – if the Commercial offer derailed. the economy in case the governments of

Trump

and Chinese President Xi Jinping can not reach an agreement.

"We do not know how or when these business problems will be solved," Powell said. "We are closely following the implications of these developments for the US economic outlook and, as always, we will act appropriately to support expansion with a strong labor market and inflation close to our symmetrical goal of 2%, "he said.

As a result of the new scenario, investment banks, funds and Wall Street badysts began to change their outlook. Barclays is now expecting a half – point interest rate reduction in September and another quarter before the end of the year, while JP Morgan 's Is expecting a loss of half a point from two cuts before December, according to the report.
Wall Street Journal.

"If the trade war continues to grow, there will be a huge drop in investment in the world and we will go into recession, the Fed will not be able to do enough to control this fall if we continue with this war." commercial, "said Alberto Bernal of XP Securities Bernal expects a significant drop in the rate if the offer persists.

Powell, one of the leaders who is most concerned about his remarks in public, knowing the impact they have on the markets, gave his speech the strongest signal about the concern over ideas and returns in search of a commercial agreement between the two partners. major economies of the planet.

In turn, Powell said the Fed would not sit idly by if the situation deteriorated to the point of jeopardizing the US's expansion, which is poised to be the longest in the US. History of the country.

The trade war has opened a new turbulent front to the Argentine economy. The offer created uncertainty and volatility in the markets and fueled investors' appetite for safe badets, such as US Treasury bonds, a phenomenon that has underpinned the market. Argentine country risk increased and slowed the recovery. of the economy. In addition, the trade war has lowered the price of soybeans, the country's main export product.