A trade deal with China is in the works, potentially alleviating one source of stress on the U.S. economy. Still, the Federal Reserve can’t rest easy. The ongoing dispute has shattered investment confidence among business leaders, and one “mini-deal” won’t magically reverse their sense of uncertainty. Lacking an inflation threat to hold them steady, the Fed will likely continue to err on the side of safety with another rate cut at the end of the month.
