By Garfield Reynolds, Bloomberg markets live reporter and strategist
The wealth destruction set off by President Trump’s trade war is similar to what occurred when the 2008 financial crisis and the 2020 pandemic hit. Back then, the Federal Reserve led central banks in riding to the rescue, but US policymakers are likely to be laggards this time round.
Fed Chair Jerome Powell is in no hurry to cut interest rates, signaling concern the import levies will boost inflation and expectations for further price increases. Other major central banks have a clearer path to helping their economies, as the US dollar’s recent weakness allows them to focus just on bolstering growth.
