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.

Topics

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The Fed is likely to hold interest rates steady. But some consumer loans are getting cheaper.

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Trump does not rule out recession as he rejects business fears over tariffs

US administration concedes some prices might rise as fears grow of trade chaos causing disruption
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US inflation fell more than expected to 2.8% in February

Figure bolsters case for cental bank to cut interest rates amid signs of slowing economic growth
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Global economy takes centre stage

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'Maximum pressure': U.S. and Canada's clash over tariffs overshadows G7 meeting

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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.
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3 tips for getting the best HELOC rate this March

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Asia-Pacific markets trade mixed despite tariff uncertainty and recession fears in the U.S.

Economists polled by Reuters expect India's inflation rate to slow to 3.98% in February from 5.68% in January.
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Euro and pound rise against dollar amid ‘Trumpcession’ fears

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US tariffs could extend Germany's recession, says bank

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U.S. tariffs could thrust Germany into recession, central bank governor says

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Stocks continue to rebound, but Tesla shares head in reverse

Investors await Federal Reserve interest-rate decision this week, while bracing for another round of U.S. tariffs.
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Weekly mortgage demand surges 11% higher, as interest rates dropped for the sixth straight week

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The U.S. tariff comes after the European Union moved to put an import tax on American whiskey.
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Banks are feeling the strain as lower-income consumers struggle with inflation and tariff chaos

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