The Federal Reserve is preparing to rescue the American economy from President Donald Trump's trade war. Fearing a recession and soft inflation, the US central bank has signaled it will cushion the blowfrom tariffs by lowering interest rates.

Some believe the Fed is taking out prudent insurance designed to prevent a deflationary spiral and extend the economic recovery long enough to normalize policy. Others point to historically low unemployment and the Dow cruising above 27,000 as evidence that the Fed is making a major blunder. CNN BUSINESS