Source: POLITICO'S MORNING AGRICULTURE, 8/22/19

U.S. economic growth will "gradually" slow over the next four years because of Trump's trade policies, lower consumer spending and a decline in government purchasing, CBO said Wednesday. The budgetary scorekeeper projects the economy will grow at an average rate of 1.8 percent per year over the next decade, reports Pro Budget's Jennifer Scholtes.

Signs of fiscal stress: The agency's latest economic outlook also estimates the federal deficit will total $960 billion this year — an increase from its May projection — after Trump signed a $2.7 trillionbudget deal to raise defense and domestic spending limits for the next two years.

— Trade barriers imposed since January 2018 will reduce household income by 0.4 percent and real GDP by about 0.3 percent by 2020, the budget office predicts.

— The yield curve also inverted again on Wednesday, the second time in a week that the bond market has issued the reliable recession warning.

Federal Reserve officials are keeping their monetary policy options open after lowering interest rates last month by 25 basis points, according to the minutes from the central bank's July meeting released on Wednesday. The bank's rate-setting committee will meet again in September, and investors widely expect another rate cut,reports Pro Financial Services' Katy O'Donnell.