US President Trump's trade war with China has dented global economic growth and he could lift that burden, incoming European Central Bank (ECB) President Christine Lagarde told CBS News's "60 Minutes" program conducted in September, according to Bloomberg.
I think the biggest key that President Trump has is in relation to predictability and, and certainty of the terms of trade. It’s the unknown which is hurting.
You can’t adjust to the unknown. So what do you do? You build buffers. You build savings. You wonder what comes next. That’s not propitious to economic development.
Asked whether the trade war could tip the global economy in the wrong direction, Lagarde said, “it’s certainly going to give a big haircut to the global economy.
If you shave off, you know, almost a percentage point of growth means less investment, fewer jobs, more unemployment, reduced growth. So, of course, it has an impact.
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