President Donald Trump’s trade war with China is heating up, prompting traders to start betting on as many as three Federal Reserve interest rate cuts totaling 75 basis points this year. That’s the kind of prediction that makes me think it is time for everyone to take a deep breath. The Fed is simply a long way from that kind of move. Neither the magnitude of recent market moves nor the data flow justify that kind of reduction in rates. Consider first the central bank’s current position. As New York Federal Reserve President John Williams describes the situation, the U.S. economy is in a “very good place.” Both ... (full story)