What’s going on here? The US struck a trade deal with the UK – its first since introducing sweeping new tariffs last month. What does this mean? The US president hailed the deal as a win for both countries. The arrangement should open up billions of dollars worth of market access for America, making it easier to export agricultural products, chemicals (including the fun ones used in alcoholic beverages), and machinery to the UK. To achieve this, Britain will fast-track the customs process and reduce non-tariff trade barriers. In return, the UK will be able to export 100,000 cars to America under a 10% levy – much less than the 25% it’d pay otherwise. Rolls-Royce will be able to sell engines and parts to the US without paying any tariffs – and those on steel and aluminum will be scrapped entirely. There will likely be a lot more to the deal, too, with more details expected to come out over the next few weeks. Why should I care? Zooming out: The UK brought out the scissors... The Bank of England cut interest rates on Thursday, lowering them from 4.5% to 4.25%. But the central bank’s decision wasn’t unanimous: a couple of its members wanted a bigger cut, while two others voted to put the scissors away entirely. Traders are still expecting at least two more trims this year though. Because even with a freshly secured trade deal, the UK’s economy could be squeezed by kinks in international supply chains – not to mention the impact of a widespread trade war. The bigger picture: … But the US kept its pair hidden. In the US, meanwhile, the Federal Reserve held interest rates steady this week. The central bank said that rising inflation and unemployment have exacerbated economic risks. Plus, surveys have indicated that businesses and everyday consumers alike are worried about the effects of tariffs – and that could keep them from spending. | 
