Fed’s three reasons for cutting in July support another move

Adding pressure: Signs of Chinese yuan and US dollar are seen at a currency exchange store in Shanghai. Since the last FOMC meeting, the US dollar has strengthened as the global economic outlook dimmed, adding more downward pressure on prices by making imports cheaper. — Reuters

WASHINGTON: Federal Reserve officials viewed their interest-rate cut last month as insurance against headwinds from the trade war and low inflation – reasons that look even sharper as they move toward their meeting in September.

Minutes of the Federal Open Market Committee’s (FOMC) July 30-31 meeting released on Wednesday in Washington laid out the reasons for the quarter percentage-point cut, highlighting risks to the outlook even though the US economy, for now, is performing well.