The U.S. Federal Reserve might need to cut interest rates if an escalating trade war with China drags on and leads consumers to cut spending in response to higher prices, a Fed policymaker said on Friday. Washington on Friday raised tariffs dramatically on about $200 billion worth of Chinese imports. Atlanta Federal Reserve President Raphael Bostic said it will take some time to know how the tariffs will affect the economy and the Fed can be patient about interest rate policy in the meantime. But he said it was possible the tariffs could lead businesses to raise prices high enough that consumers pull back, which ... (full story)