US Fed rate cut bails out Trump for policies that are slowing the economy

Fed rate cuts in conjunction with additional fiscal stimulus could result in higher inflation - which could spook markets and lead to a nasty unwinding

The Federal Reserve appears to be bailing out the president.

Responding to concerns of a slowing economy – in part caused by President Donald Trump’s trade wars – the Fed cut short-term interest rates for the first time since 2008, lowering its benchmark rate 25 basis points to 2.25%.

The cut sends a message to financial markets and households that the Fed stands ready to give the economy a boost should it slow further. Given that it’s forced to do so by Trump’s own policies, the central bank is essentially