# Federal Reserve's quick pivot to easier policy started with a Trump tweet on trade

> The Federal Reserve has moved toward lower interest rates, with officials signalling a possible cut as soon as July. Analysis traces the shift to President Trump's May 5 tweet threatening new China tariffs, which upended expectations of a trade deal. Trade conflict and economic sluggishness are cited as reasons for the pivot.

- Date: 2019-06-20 · published 2019-06-20T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/58510-federal-reserve-s-quick-pivot-to-easier-policy-started-with-a-trump-tweet-on
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Expected rate cuts tend to weaken the dollar and support commodity prices, while escalating trade tensions add uncertainty to export demand for US farm goods.

## Read by commodity

- DXY: bearish ▼
- SOY: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-10-21 | [The Federal Reserve’s New Monetary Policy Strategy](https://feedsoft.ai/events/50554-the-federal-reserve-s-new-monetary-policy-strategy.md) | -0.2% | -1.6% |
| DXY | 2018-07-19 | [Trump criticizes Federal Reserve for rate hikes, breaking with tradition](https://feedsoft.ai/events/64223-trump-criticizes-federal-reserve-for-rate-hikes-breaking-with-tradition.md) | -0.4% | +1.6% |
| DXY | 2020-04-30 | [Pound-Dollar Rate Aims for the Stars after Federal Reserve Swerves Onto Main Street](https://feedsoft.ai/events/53873-pound-dollar-rate-aims-for-the-stars-after-federal-reserve-swerves-onto-main.md) | +0.7% | -1.4% |
| DXY | 2019-06-20 | [Dollar falls to 2-week low after Federal Reserve meeting](https://feedsoft.ai/events/7438-dollar-falls-to-2-week-low-after-federal-reserve-meeting.md) | -1.1% | -0.8% |
| DXY | 2026-05-17 | [Dollar retreats as traders focus on Iran, Fed policy](https://feedsoft.ai/events/19471-dollar-retreats-as-traders-focus-on-iran-fed-policy.md) | +0.0% | +0.0% |
| SOY | 2017-05-25 | [StanChart’s chief economist says these four currencies will move most on Fed shock](https://feedsoft.ai/events/70926-stanchart-s-chief-economist-says-these-four-currencies-will-move-most-on-fed.md) | -3.8% | -4.7% |
| SOY | 2024-11-13 | [PBOC pulls China’s yuan off 3-month low with stronger-than-expected fix - Markets - Business Recorder](https://feedsoft.ai/events/6696-pboc-pulls-china-s-yuan-off-3-month-low-with-stronger-than-expected-fix-markets.md) | -0.5% | -0.8% |
| SOY | 2019-08-26 | [China lets yuan sink, Trump says serious talks to start \| AP News](https://feedsoft.ai/events/57793-china-lets-yuan-sink-trump-says-serious-talks-to-start-ap-news.md) | +1.6% | +5.8% |

## Sources

- cnbc.com: https://www.cnbc.com/2019/06/20/federal-reserves-quick-pivot-to-easier-policy-started-with-a-trump-tweet-on-trade.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.