The U.S.-China deal to lower the most aggressive import tariffs between the world's two largest economies could lessen the impact of their trade war, though the levies left in place are still steep and will leave a mark on the economy, Federal Reserve officials said on Monday.
Federal Reserve Governor Adriana Kugler said the 90-day pause on import levies at levels that threatened to shut down bilateral trade reduces chances that the U.S. central bank will need to lower interest rates in response to an economic slowdown.
The outcome of the weekend meetings between Chinese and U.S. officials "obviously ... is an improvement as far as trade between the two countries" is concerned, Kugler said at a Central Bank of Ireland symposium in Dublin.
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