The Federal Reserve has embarked on a drastic U-turn in policy since its most recent interest rate hike in December. Amid heavy political pressure from President Trump, policymakers have shifted from signalling that additional hikes are on the way to all but confirming that rates will be cut for the first time in more than a decade at its July meeting. At the FOMC’s latest meeting in June, the Fed gave its clearest indication yet that lower rates are on the way as it voiced heightened concerns over the recent escalation in US-China trade tensions.