Federal Reserve officials have warned that the loss of the US’s safe-haven status triggered by President Donald Trump’s global trade war could have “long-lasting” effects on the country’s economy.
Minutes from the Federal Open Market Committee’s early May vote, published on Wednesday, indicated that some rate-setters focused on the fall in prices for US government debt, equities and the dollar in the weeks after the president announced sweeping tariffs on trading partners.
“These participants noted that a durable shift in such correlations or a diminution of the perceived safe-haven status of US assets could have long-lasting implications for the economy,” the minutes said.
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