Below is an extract of a post published on Guardian titled "A trade war is no reason to ease monetary policy | Jeffrey Frankel"
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Via: Guardian
Central banks cannot counteract smaller real incomes – only voters can do that The world is in a trade war and there is no sign of peace breaking out anytime soon. By now, the disruption to trade appears extensive enough to factor negatively into forecasts for economic growth. Does that mean the Federal Reserve should stop gradually raising interest rates? The answer is no. Monetary policy cannot mitigate the damage done by foolish trade policies. Related: Does setting inflation targets cloud our view of the economy? | Robert Shiller Continue reading…
