Global Markets Brace for Trump's Economic Disruption

As Donald Trump prepares to enter the White House, global economic uncertainty intensifies. The U.S. Federal Reserve hinted at fewer rate cuts, while concerns over Trump's tariffs and policies weighed on markets. Canadian Finance Minister Freeland resigned over tariff disputes, and major central banks worldwide adjusted their economic outlooks.

The world's financial markets are on edge as the U.S. prepares for Donald Trump's presidency. This week, the U.S. Federal Reserve signaled a shift towards fewer rate cuts, casting uncertainty across global economies. Amidst busy central bank meetings globally, cryptocurrencies and tariffs are drawing heightened attention.

Federal Reserve Chair Jerome Powell highlighted the challenge of inflation, coupled with the potential impact of Trump's proposed tariffs and policy changes. U.S. central bankers anticipate higher growth and inflation in the coming year, releasing cautious projections for the economy. Stock markets responded with a downturn as investors recalibrated their expectations.

In response to potential U.S. tariffs under Trump, Canada's Finance Minister Chrystia Freeland resigned after clashes with Prime Minister Justin Trudeau. Meanwhile, central banks across Europe and Asia, including Japan, are reassessing their economic strategies amidst looming policy uncertainties and trade tensions.

(With inputs from agencies.)