The Fed muddies the waters

The latest FOMC meeting on January 29 and 30 saw confirmation of the halt to monetary normalization, with the end to the Fed funds hike cycle and an easing in the Fed’s balance sheet management (reduction) policy, although the exact terms of this remain to be seen. 
The most surprising part about this decision is that it was dictated by the threat of shocks from external factors (Brexit, China, etc.) rather than the desire to tackle any domestic problem, marking the first time that the Fed has taken this kind of decision to normalize monetary policy without making a direct reference to its domestic economic situation. 
Yet the shift in monetary policy direction could have been based on purely internal considerations rather than referring to potential external shocks, so this move raises a number of questions.

Where is the US economic policy?

Donald Trump thought that it was an easy task to replace Obamacare by Trumpcare. It was a mistake and Obamacare will remain the framework for millions of americans. He also said in his campaign that the US trade was a source of concern due to unfair trade agreements. He is currently understanding that it is more complex than expected and we can expect that probably nothing important will change.
There was a risk of trade war with Mexico or with China. It’s no longer the case. The press release of the Trump-Xi Jingping in Florida  doesn’t show the revival of a trade war. It’s just a discussion with concessions made by China to the US. It’s not the beginning of a conflict and the very large Chinese surplus with the US will not disappear in a foreseeable future.
In one word, Trump’s campaign as candidate was based on the repeal of the Obamacare and on the possibility of trade war. Both strategies have already failed in less than 100 days. What will happened then? What could be the credibility of the White House? Who will care? The next 4 years may be very long…

The failure of Trump’s strategy is clearly explained by Paul Krugman in a NY Times op-ed published earlier this month.
During the campaign, Donald Trump talked loudly and often about how he was going to renegotiate America’s “horrible trade deals,” bringing back millions of good jobs. So far, however, nothing has happened. Not only is Trumpist trade policy — Trumptrade? — nowhere to be seen in practice; there isn’t even any indication of what it will involve.”
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