The Federal Reserve's recent interest rate cut was the result of growing concerns about the economy. Fed Chairman Jerome Powell said the cut was necessary because “the global growth outlook has weakened” and “trade policy tensions have waxed and waned.” These risks have reduced U.S. business investment and exports. President Donald Trump would be wise to share the Fed's trade-policy concerns because history shows trade restrictions during periods of economic uncertainty can sink sitting presidents.
President Herbert Hoover signed the disastrous Smoot-Hawley Tariff Act in June 1930, raising the average tariff rate to nearly 60 percent. The act increased tariffs to record levels on more than 20,000 imported goods and fueled massive retaliation by countries.
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