Rising trade tensions revive bets on deep U.S. rate cut

NEW YORK (Reuters) – U.S. interest rates futures rallied on Friday as rising trade tensions between China and the United States revived bets the Federal Reserve may lower key borrowing costs by a bold half-point next month.

Earlier Friday, Beijing said it will impose a retaliatory tariffs on about $75 billion worth of U.S. goods targeting agricultural and oil products.

“I will be responding to China’s Tariffs this afternoon,” U.S. President Donald Trump wrote in a tweet.

Reporting by Richard Leong

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