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 - 2d -
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 - 4d -
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 - 1d -
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 - 3d -
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 - 4d -
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 - 3d -
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 - 3d -
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. - 3d -
E.C.B. Cuts Interest Rates Again, With an Uncertain Path Ahead
Vows by European leaders to increase borrowing to ramp up military spending have reshaped the fiscal picture that the central bank must confront.The New York Times - Mar. 6
More from The Guardian
-
At least 50 killed and more than 100 injured in nightclub fire in Kočani, North Macedonia – Europe live
Blaze reportedly broke out in the early hours at Pulse club in town 60 miles from Skopje. North Macedonia’s public prosecutor Ljupco Kocevski has said five prosecutors would investigate the ...The Guardian - 38m -
Trump orders airstrikes on Yemen in warning to Houthis over shipping route
At least 31 people killed in strikes on Sana’a and Sa’ada on Saturday, says Houthi-run health ministry. Donald Trump said he ordered a series of airstrikes on Yemen’s capital, Sana’a, on Saturday, ...The Guardian - 3h -
Judge blocks Trump from using 18th-century wartime act for deportations
Trump had invoked the Alien Enemies Act of 1798 to deport five Venezuelans, but order halted by judge. Alien Enemies Act: what is it and can Trump use it to deport gang members? Donald Trump ...The Guardian - 14h -
Peruvian fisher rescued after three months stranded at sea
Maximo Napa says he survived by eating cockroaches, birds and a turtle – and thinking about his mother. A Peruvian fisher was found alive after drifting at sea for 94 days, a navy official said on ...The Guardian - 54m -
SpaceX capsule docks with ISS to bring back stranded Nasa astronauts
The arrival of four astronauts will allow Butch Wilmore and Suni Williams to return to Earth after nine months on the International Space Station. A SpaceX capsule delivered four astronauts to the ...The Guardian - 6h
More in World
-
At least 50 killed and more than 100 injured in nightclub fire in Kočani, North Macedonia – Europe live
Blaze reportedly broke out in the early hours at Pulse club in town 60 miles from Skopje. North Macedonia’s public prosecutor Ljupco Kocevski has said five prosecutors would investigate the ...The Guardian - 38m -
Switzerland’s new defence minister seeks closer ties with Nato neighbours
Neutral nation spends less than 1 per cent of GDP on military but is starting to reconsider its postureFinancial Times - 44m -
Lando Norris begins season with Australian F1 GP victory ahead of Max Verstappen
Verstappen second, Russell third as Piastri finishes ninth Lewis Hamilton 10th in Melbourne on Ferrari debut If he is to make a tilt at this season’s Formula One world championship, Lando ...The Guardian - 48m -
US enforcement unit ended by Trump wins right to auction Russian yacht
Sale of the $300mn Amadea is expected to move forward but cases that were not charged yet are likely to be abandonedFinancial Times - 51m -
US allies in Asia must also rethink their defence
Trump’s foreign policy shake-up has profound implications for Japan and South KoreaFinancial Times - 51m