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Opinion
Bill Dudley

The Fed Shouldn’t Enable Donald Trump

The central bank should refuse to play along with an economic disaster in the making.

Economic threat.

Economic threat.

Photographer: Ludovic Marin/AFP/Getty Images
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U.S. President Donald Trump’s trade war with China keeps undermining the confidence of businesses and consumers, worsening the economic outlook. This manufactured disaster-in-the-making presents the Federal Reserve with a dilemma: Should it mitigate the damage by providing offsetting stimulus, or refuse to play along?

If the ultimate goal is a healthy economy, the Fed should seriously consider the latter approach.