Fed's Mester sees downside risk from escalating trade war

JACKSON HOLE, Wyo. (Reuters) - Cleveland Federal Reserve President Loretta Mester said on Saturday she sees "big downside risk" from rising trade uncertainty, and will be watching how businesses and consumers react ahead of the U.S. central bank's next policy meeting. Mester, who opposed the Fed's interest rate cut last month, spoke a day after the U.S.-China trade war escalated sharply, with Beijing and Washington slapping additional tariffs on each other's goods and President Donald Trump..