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: GettyFederal Reserve officials are closely monitoring the recent escalation in trade tensions, and Chairman Jerome Powellindicated Tuesday officials could respond by cutting interest rates if the economic outlook deteriorates. He didn’t say whether he thought that would be needed. “We do not know how or when these trade issues will be resolved,” Mr. Powell said.

Source: Wall Street Journal June 04, 2019 09:22 UTC