US Fed: Prospect of trade war poses ‘downside risks’ to economy

Washington (United States) (AFP) – The prospect of a trade war poses “downside risks” to the US economy, which otherwise is poised to grow at a solid pace, the Federal Reserve said Wednesday.

While the Fed said the steep tariffs on steel and aluminum imports that President Donald Trump imposed last month will not on their own have a significant effect, the possibility of “retaliatory trade actions by other countries” could be harmful.