Trump is getting the lower interest rates he demanded from everyone but the Fed | U.S. & World [Video]

By Howard Schneider

WASHINGTON (Reuters) – U.S. President Donald Trump is getting his wish that interest rates drop across the world, just not at home where a strong economy and uncertainty over his own policies have set the stage for the Federal Reserve to diverge from its central bank peers.

The European Central Bank cut rates on Thursday, the Bank of Canada did as well on Wednesday, and the Bank of England is likely to do so next week – steps that, with the Fed in a holding pattern on rates, could strengthen the value of the dollar and further complicate Trump’s trade goals by making imports cheaper and U.S. exports more expensive.

ECB President Christine Lagarde noted on Thursday that renewed trade tensions could even put more pressure on lagging euro zone growth, a potential argument for even lower rates in the 20-nation bloc.

“The risks to economic growth remain tilted to …