Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

Fed's Kashkari: Rate cuts a 'poor tool' to undo trade war harm

Fed's Kashkari: Rate cuts a 'poor tool' to undo trade war harm
FILE PHOTO: President of the Federal Reserve Bank on Minneapolis Neel Kashkari listens to a question during an interview in New York, U.S., March 29, 2019. REUTERS/Shannon Stapleton -
Euronews logo
Text size Aa Aa

TORONTO (Reuters) – Cutting interest rates is a “poor tool” to undo the harm to the U.S. economy from an escalating trade war between the United States and China, Minneapolis Federal Reserve Bank President Neel Kashkari said on Wednesday, but the U.S. central bank needs to do it anyway.

“If business investment continues to slump, if the recession warning lights continue to flash, I think the Federal Reserve will need to do what we can to try to keep the economy moving,” Kashkari told the Minneapolis chapter of the National Association of Corporate Directors. The inverted yield curve, he said, is the “most concerning” signal of a possible recession, because it shows how worried investors are about growth.

(Writing by Ann Saphir in San Francisco, Editing by Chizu Nomiyama)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.