RHETORIC MEETS REALITY?

The US Federal Reserve said on Thursday it saw signs that worries among companies about trade were curbing investment, a cloud over the otherwise strong US economy.

On the same day, Bank of England Governor Mark Carney warned that uncertainty about trade could cause market interest rates to snap higher around the world.

That would further complicate the challenge for many economies, especially developing ones, which are already trying to cope with the impact of rising US interest rates.

“At the moment, protectionism is largely just talk, and tweets,” Mr. Carney said. “But what if rhetoric becomes reality?” Even though the measures and counter-measures announced so far by the United States, the EU and China — plus Mexico and Canada as US North American Free Trade Agreement partners — would double bilateral tariffs and take US duties to their highest levels in 50 years, their impact was unlikely to be major, Mr. Carney said. —