Trade headwinds picked-up in August with additional tariffs on China imports announced. Apart from their direct impact, they can impact the economy by disrupting financial markets and reducing business sentiment. We expect a further 50bp of cuts in the fed funds rate over the rest of 2019. GDP growth is expected to slow in H2 2019 before stabilising in 2020 and 2021 at around trend, but risks are to the downside.

Find out more NAB’s US Economic Update – August 2019