Fear of a tariff ‘Trumpcession’ puts pressure on Bank and Fed over interest rates
A trade war could push up inflation when both the UK and US economies really need cheaper borrowing. So what’s a central bank to do?
Monetary policymakers on both sides of the Atlantic will be considering how seriously to take Donald Trump’s threats of an all-out trade war as they give their verdict on the path of interest rates this week.
The Federal Reserve, the US central bank, will examine the prospect of a “Trumpcession” brought on by tariffs that send import costs rocketing and convince consumers, already shellshocked from the cost of living crisis, to stop spending.
Continue reading...
Read more at The Guardian
Topics
-
U.S. tariffs could thrust Germany into recession, central bank governor says
Ongoing U.S. tariffs could push Europe's largest economy into a recession, German central bank President Joachim Nagel warned.CNBC - 3d -
India's inflation rate dips to cooler-than-expected 3.61% in February, below central bank's target
The lower inflation reading could give the Reserve Bank of India room to cut rates and support its slowing economy.CNBC - 5d -
Federal Reserve is likely to hold interest rates steady next week. But some consumer loans are getting cheaper
High interest rates have put pressure on households, but some borrowing costs are starting to ease, even with the Fed on the sidelines.CNBC - 2d -
US tariffs could extend Germany's recession, says bank
Germany's central bank president says US tariffs and retaliation to them could tip Europe's largest economy into recession again.BBC News - 4d -
Lagarde says ‘impossible’ for ECB to always guarantee 2% inflation
Potential price pressure from trade war and debt-fuelled borrowing add to uncertainty, warns central bank presidentFinancial Times - 5d -
Inflation and interest rates tracker: see how your country compares
Inflationary pressures are beginning to wane but not all central banks have taken action yet. See how this affects youFinancial Times - 4d -
Trump’s tariff volatility complicates Fed’s rate messaging
US central bank risks relying too much on backward-looking data, economists warnFinancial Times - 6h -
What are tariffs and why is Trump using them?
Tariffs are a central part of Trump's political vision, but economists fear they could spark a trade war.BBC News - 4d -
Inflation and Gas Prices Just Hit 4-Year Lows. The Fed Won’t Care
Policymakers won’t cut interest rates in March, but pressure is mounting.Inc. - 4d
More from The Guardian
-
Kremlin confirms Trump-Putin call on Tuesday as European leaders question Russia’s intentions – Europe live
Russian leader and US president to speak by phone and discuss Ukraine ceasefire plan. Hungary’s ruling Fidesz party submitted a bill to parliament on Monday that would ban the Pride march by ...The Guardian - 35m -
Houthis and US both vow escalation after wave of deadly American airstrikes in Yemen – Middle East crisis live
US says airstrikes are intended to deter rebel group from attacking Red Sea shipping. Israeli tanks and armoured vehicles continue to be positioned around the occupied West Bank city of Jenin and ...The Guardian - 33m -
Canada PM Carney visits France and UK as Trump trade war deepens
Carney aims to bolster European alliances in wake of US president’s attacks on Canada’s sovereignty. Mark Carney, the new Canadian prime minister, has arrived in Paris on his first stop of a visit ...The Guardian - 1h -
Italy one of five ‘dismantlers’ causing ‘democratic recession’ in Europe, report says
Civil liberties report warns that Italy along with Bulgaria, Croatia, Romania and Slovakia intentionally undermining rule of law ‘in nearly all aspects’. Italy’s government has profoundly ...The Guardian - 7h -
North Macedonia mourns dead in nightclub fire as 15 people detained
Government declares seven-day period of mourning after fire in eastern town of Kočani kills at least 59. North Macedonia has declared a seven-day period of mourning after a fire in a nightclub ...The Guardian - 16h
More in World
-
Mother of 5 Avoids Jail After Plotting to Sell Dead Man's Toes for $250 Online: Reports
Yahoo News - 20m -
Mother of 5 Avoids Jail After Plotting to Sell Dead Man's Toes for $250 Online: Reports
Yahoo News - 20m -
‘Something must have gone wrong with us’: David Cronenberg and Howard Shore on four decades of body horror
One is the master of gruesome horror, the other is the composer who scored his most famous films. They sit down to discuss their 46-year collaboration, and the unlikely source of their darkest, ...The Guardian - 32m -
Dressing like a witch is in fashion – finally I am ahead of the curve
Like other middle-aged women, my wardrobe is predominantly made up of black, loosely fitting clothing, often worn backwards. I’m glad to see us represented in the witchcore trend. . “It’s time,” ...The Guardian - 32m -
Houthis and US both vow escalation after wave of deadly American airstrikes in Yemen – Middle East crisis live
US says airstrikes are intended to deter rebel group from attacking Red Sea shipping. Israeli tanks and armoured vehicles continue to be positioned around the occupied West Bank city of Jenin and ...The Guardian - 33m
