Trade Tiff

The currently proposed but not yet implemented trade tariffs by China on the US and vice versa will probably reduce US GDP by 0.15 of a percentage point and boost inflation by 0.1 of a percentage point, impacts small enough to be largely ignored by the Fed and others. The fear; a full-fledged trade war. In that case, US GDP could fall by 0.75 of a percentage point. OMG!

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