The growing trade war between China and the US could increase pressure on the overall economy, according to Boston Fed President Eric Rosengren.
The central bank official said in a ready comment on Tuesday that the ongoing conflict between the world's largest economies was "an obvious risk down," and added that it seemed to be "an important reason for the patience of those who were formulating policies". until this source of uncertainty has been resolved. "
Rosengren, a voting member of the Federal Market Marketing Committee, said prolonged tariffs threaten economic growth and could increase market volatility.
While my basic forecast assumes that a trade agreement will happen without seriously disrupting global trade or global economies, it may be some time before that uncertainty is resolved. , "he said.
China's tins and the US's payments are worth billions of dollars of each other's products earlier this month. Those moves have pushed the S&P 500 down 2.8% for May. The U.S.-cap stock index is also large at speed to break a four-month streak.