America is now engaged in a exchange conflict with china. Where it goes, and the way far it is going, are uncertain. However, because china is our biggest trading partner the impact of a alternate war on our economy (and theirs) can be vast. The uncertainty created by using the change conflict makes economic planning by means of the fed particularly difficult.
This is due to the fact the repute of exchange can exchange quickly; a tweet from the president can announce new price lists and send markets reeling. How does the fed ó which meets approximately every six weeks ó prepare for any state of affairs? To be safe, the fed would possibly reduce the financial institution fee to offset economic harm from change wars.