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Policymakers lowered rates a quarter point and said that the region's growth outlook had "deteriorated" because of rising trade tensions.
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The U.S. bond market has been in rough patch since President Donald Trump announced "Liberation Day" tariffs.
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Jerome Powell has said that the Federal Reserve can be patient as the effects of tariffs become more clear. President Trump, who is pushing for interest rate cuts, said, "Powell's termination cannot come fast enough!"
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