Fed Monetary Policy Consider Financial Stability Risk More Broadly, Not Embolden the Trade War!

5 min read

The Federal Reserve effectiveness is unjustifiably tested by President Trump, who blames data-dependent monetary policy for a stronger dollar rather than a strong U.S. economy, record low unemployment and a bond bias, driven by concerns of a slowing global economy as well as the U.S. – China trade and technology war. The latter exacerbated dollar strength following the Treasury’s decision to impose 25% and 10% tariffs on 250 billion and 300 billion worth of Chinese products spanning transport equipment, apparel and U.S. technological products. The Chinese economy, whilst important to U.S. technology supply chains, is also more exposed to trade…...

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Henri Kouam Tamto Henri Kouam Tamto is a macroeconomist focusing on Oil, FX and Credit markets in Advanced and emerging market economies. Working both independently and as part of a team, Henri forecasts and writes both thematic as well as research notes on economic data releases, Central bank policy, and global commodity prices. He also has a strong interest in trade policy and the implications of globalization for countries and asset classes.