The Fed: Fed increasingly worried about spillovers from trade, but showed no sign of pausing rate hikes

Federal Reserve Chairman Jerome Powell

Federal Reserve officials were worried about escalating trade disputes at their meeting in early June but showed no inclination to pause plans for further interest rate hikes, according to minutes of the meeting released Thursday.

Many Fed officials thought the downside risks from trade policy “had intensified,” the minutes show.

Business leaders were expressing their concern over trade policy to the central bank, according to the minutes. Some indicated their worries had resulted in pulling back plans for capital spending.

New tariffs on U.S. and Chinese products are due to be implemented on Friday. Already, new tariffs on steel and aluminum have been imposed.

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