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Federal Reserve’s (Fed) interest rate cuts have offset the negative effects of the US-China trade war and an economic recession is nw looking unlikely unless there is a dramatic escalation in the trade war, in which case recession risks would be back on the table, analysts at Goldman Sachs wrote in a weekend snippet.

Key quote

“Surprisingly limited”   evidence for a significant effect on business, consumer and investor sentiment.

So far, the US central bank has cut rates by 50 basis points in 2019. The probability of another 25 basis point rate cut at Oct. 30 meeting currently stands above 80%, according to CME’s FedWatch tool.