Central Banks
Central Bankers Move Slowly Through Fog of Trump’s Trade Wars
- Some central banks have shifted tack, citing uncertain outlook
- Wait-and-see is the mantra as tariffs spur price, growth risks
US President Donald Trump has already upended global trade and the postwar international security consensus. Now, he’s throwing central banking into disarray.
Monetary policymakers are being knocked off course by the twists and turns of White House policy, with markets paring back interest-rate cut expectations across the globe. No longer are central bankers “either the frontmen or rhythm-keepers of macro policy,” said Thierry Wizman, a strategist at Macquarie. “They’re now followers, who are ceding their dynamism to events in federal legislatures, executive mansions and diplomatic halls.”