However, the Fed veered away from any trade war language in their statement, but Powell did address the trade wars as something the central bank is eyeing. Market analysts are prognosticating that an escalation in the trade wars could give pause to the Fed’s current rate-hiking policies moving forward as they could potentially stymie economic growth.

Despite establishing this precedent on trade war questions, Powell didn’t sidestep the issue, commenting that the Federal Reserve is fully aware of the ongoing fret amongst not only the capital markets, but from actual businesses themselves.

“You will have seen that we have this very extensive network of business contacts around the country through reserve banks largely and we’ve been hearing a rising chorus of concerns from businesses all over the country,” Powell added.

However, despite the growing concerns of trade wars, Powell said its wide-ranging effects have yet to penetrate the economy and cause any disruptions.

For more trends in fixed income, visit the Rising Rates Channel.