Trump trade upheaval leaves foreign central banks guessing
Source: Reuters
Slowing economic growth mixed with a bout of renewed inflation risks moving the U.S. from global overachiever to a drag on the rest of the world as foreign central banks and others confront the spillovers from President Donald Trump's fast-moving effort to rewire international trade.
With analysts in the U.S. noting the stagflationary direction of the U.S. outlook - weaker output and higher prices - central banks globally are parsing what the fallout may mean for them.
When the Bank of England held its policy rate steady on Thursday it pointed specifically to Trump's tariff moves as clouding the global outlook. "Other geopolitical uncertainties have also increased and indicators of financial market volatility have risen globally," it said in a statement.
Similar warnings came from the Bank of Japan, which held its policy rate steady and signaled future moves could be shaped by how Trump's plan to blanket the world with new tariffs plays out in practice.
Read more: https://www.reuters.com/markets/rates-bonds/trump-trade-upheaval-leaves-foreign-central-banks-guessing-2025-03-20/
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