President Trump threatened to impose escalating tariffs on Mexican imports beginning early June. WSJ's Gerald F. Seib explains how these new tariffs could imperil the new Nafta, or USMCA. Photo: GettyCHICAGO—Federal Reserve Chairman Jerome Powell said the central bank is closely monitoring the recent escalation in trade tensions and indicated it could respond by cutting rates if the economic outlook deteriorates. “We do not know how or when these trade issues will be resolved,” Mr. Powell said. “We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate...

Source: Wall Street Journal June 04, 2019 13:57 UTC