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Commenting on the potential impact of the trade dispute with China, Atlanta Fed President Raphael Bostic argued that although the increased tariffs on Chinese imports are a “short-term thing,”   the Fed would need to cut interest rates if it becomes prolonged  and hit consumer spending and the GDP.

Bostic further reiterated that his base case scenario was for one rate hike in 2019.  “But that is predicated on stronger inflation,”  he added.