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11.10.2019, 12:12

Minneapolis Fed president Kashkari: Monetary policy is not the right tool to respond to a trade war, but it is the only tool that we have

  • There is more slack in the labour market
  • Wage growth is still tepid
  • Not the time to tap the brakes on the economy
  • Extended trade war could lower neutral rate further
  • We can't model the shock a trade war will have on psychology and how it is going to ripple through to the economy

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