Economic Uncertainty Amid Trump's Incoming Administration

The global economy faces uncertainty with Donald Trump's incoming U.S. presidency. Federal Reserve officials anticipate higher inflation and interest rates. Canada's Finance Minister resigns over potential U.S. tariffs. Central banks worldwide prepare for economic challenges. Crypto markets stumble as Trump suggests a bitcoin reserve, but the Fed dismisses legal authority.

The world economy is grappling with uncertainty as U.S. President-elect Donald Trump's administration looms ahead. Federal Reserve officials anticipate heightened inflation and restrictive interest rates, alongside a surprise resignation from Canada's Finance Minister due to concerns over potential U.S. tariffs.

The Federal Reserve has adjusted its interest rate forecasts amidst global central bank meetings from Ottawa to Tokyo, reflecting apprehension over Trump's forthcoming policies. Despite cutting rates as expected, Fed officials predict higher growth and inflation, triggering caution from Fed Chair Jerome Powell against further rate commitments.

Potential U.S. tariffs under Trump have already led to Canada's Finance Minister Chrystia Freeland resigning. Meanwhile, in the crypto realm, Trump's idea of a bitcoin reserve faces setbacks, with the Fed declaring no legal grounds or plans for such an initiative, resulting in a drop in crypto asset prices.

(With inputs from agencies.)