Morgan Stanley: The Federal Reserve has limited options for dealing with tariffs

Tariffs make the Fed's job more difficult in boosting the flagging economy. "First, the Fed may be late in coming, and second, its ability to offset the global shift toward protectionism is limited," Morgan Stanley analysts said in a research note. "This will only make things less bad. A downturn could lead to earlier, if not faster, easing." (Kim X)