Global Markets Brace for Economic Shift Amid Trump's Policies

Global financial markets are on edge as the U.S. Federal Reserve adjusts its rate cut projections in response to the incoming Trump administration. Central banks worldwide show caution due to anticipated tariffs, trade tensions, and economic policies under Trump, impacting growth and inflation predictions.

The global economic landscape is bracing for change as the Trump administration prepares to take office. Central banks around the world, including the U.S. Federal Reserve, are reassessing interest rate strategies amid uncertainties surrounding new U.S. policies.

Jerome Powell, chair of the Federal Reserve, highlighted concerns over persistent inflation and potential economic impacts of Trump's proposed tariffs, tax changes, and immigration policies. These factors have led to revised projections for higher growth and inflation, prompting cautious stances on future rate cuts.

Internationally, the Bank of Japan and Norway's central bank are wary of the broader implications of a trade war, while Sweden adjusts rates with an eye on future caution. Meanwhile, the resignation of Canada's Finance Minister underscores the geopolitical tensions influencing economic strategies as the global community assesses the influence of Trump's policies.

(With inputs from agencies.)