Global Economy Faces Uncertain Future Amid Divergent Monetary Policies

Lackluster growth and job market risks overshadow the U.S. Federal Reserve's annual Jackson Hole conference. U.S. and European central banks are eyeing interest rate cuts, while Japan's monetary policy diverges. Weak consumption and market volatility persist, with China's slowdown adding to global economic uncertainty.

The global economy is on uncertain grounds as the U.S. Federal Reserve's Jackson Hole conference highlighted emerging risks to the job market and tepid growth. U.S. and European central banks are considering cutting interest rates, while Japan focuses on ending decades of monetary support amid rising prices.

The policy divergence complicates the global economic outlook, with doubts over a U.S. soft landing, European growth revival, and China's weak consumption adding to concerns. Analysts remain cautious despite optimistic projections from the IMF, highlighting the fragile foundation of these forecasts.

Market volatility is expected to persist as central banks shift towards easing policies. Unresolved questions around rate cuts in the U.S. and Europe, coupled with Japan's differing approach, create a complex financial landscape. China's economic challenges further heighten global uncertainty, impacting manufacturers and emerging markets.

(With inputs from agencies.)