The economic consequences of Donald Trump’s second presidency are becoming increasingly palpable. Five months into his new term, global central banks are facing challenges linked to the White House’s policies.
Central Banks in Uncertainty
At the annual central bank gathering in Sintra, Portugal, Federal Reserve Chair Jerome Powell, ECB President Christine Lagarde, and the governors of the Bank of England, Bank of Japan, and Bank of Korea discussed the fallout from Trump’s economic policies. Powell stated that the Federal Reserve would not rush to change interest rates, even as the economy shows signs of cooling. According to Bloomberg economist Stuart Paul, "Rapid core inflation and slowing spending keep the Fed uneasy."
Asian Economy Under Tariff Pressure
Asian countries are also feeling the negative effects of Trump’s new policies. PMI readings are expected from China and other regional countries, which may indicate further declines in manufacturing activity. Tariffs imposed by the US and rising deflation are dampening production lines in Asian countries like South Korea, Malaysia, and Vietnam.
Europe and Latin America Prepare for Changes
In Europe, central banks are also adjusting to the changing economic landscape. Inflation data from Germany and Italy is expected to be released on Monday. In Latin America, Argentina and Chile will publish crucial economic indicators that could influence future economic policies in these countries.
Donald Trump’s economic policy is causing significant repercussions for central banks and the economies of various countries. The global community is closely monitoring changes that may impact the future of the global economy.
