Fed not focused on daily ups, downs of trade deal
Thu Nov 14 2019
Lucy Harlow (2748 articles)

Fed not focused on daily ups, downs of trade deal

 The U.S. Federal Reserve will not make policy based on day to day developments in U.S.-China trade policy or on Britain’s exit from the European Union, a U.S. central banker said on Thursday, in part because businesses do not make their decisions that way either.

“For me, it’s not about the ups and downs on a given day, or even within a given day, around negotiations whether on trade, or on Brexit or anything else, because those tend to move around quite a bit,” New York Fed President John Williams said at a conference on monetary policy and global uncertainty at the San Francisco Fed.

Monetary policy can take a year to work its way into the economy, he said, so the Fed has to take a longer view.

“Even if there’s some kind of resolution on a particular issue, I think this uncertainty factor, which we are hearing from everywhere from business people across the country, that’s unlikely to turn on a dime,” he said.

“It’s going to require some time of people thinking they have certainty around the trade environment, around the geopolitical environment, so they can make those longer-term business decisions.”

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe