Fed considers tariffs a "persistent obstacle" to economic growth

Members of the Federal Reserve, worried about future growth, are very concerned about the tariff battle between the United States and China, citing the issue several times during the discussions held at the July Central Bank meeting .

MPs have spoken of trade several times, saying it was one of the main headwinds for the economy, according to the minutes of the meeting released on Wednesday.

"Participants generally felt that the risks associated with trade uncertainty would remain a persistent adverse factor, with a number of participants indicating that their business contacts made decisions based on their belief that the uncertainties associated exchanges were not likely to dissipate any time soon, "the minutes said.

The combination of tariffs and generally slower economic conditions "could have significant negative effects on the US economy," while weak business investment suggests "a slower economic growth than expected by the US economy. staff".

Both parties are struggling with trade tensions in the midst of a tariff battle that will not let go of anything. The situation was one of three factors cited by Fed officials when they decided to reduce their benchmark interest rate by a quarter point at the July policy meeting.

Members "have generally found that uncertainty over trade policy and global growth concerns continue to weigh on business confidence and capital expenditure plans of companies," the report said.

In addition to the challenges of trade and the global downturn, Fed officials have estimated that overall economic growth is strong, with "largely positive" data and an economy "resilient to ongoing global developments".

The minutes indicated that the trade had an impact on the manufacturing and agricultural industries.

President Donald Trump jostled the markets the day after the Fed meeting when he announced that he would introduce tariffs on all Chinese imports in September. It has since amended this directive, deferring the rights to some of the most consumer-sensitive areas until December.