Central Banks Weigh Interest Rate Decisions Amid Uncertainty Over Trump’s Trade Policies

The Federal Reserve and Bank of England are expected to hold rates steady as tariffs and inflation concerns complicate economic outlooks.

The US Federal Reserve is expected to keep interest rates unchanged at its upcoming meeting, maintaining a target range of 4.25% to 4.5%.
President Trump’s recent tariffs on major trading partners, including Canada, Mexico, and China, have raised fears of a potential recession, dubbed a 'Trumpcession.'
The Bank of England faces a similar dilemma, with inflation above its 2% target and the UK economy shrinking by 0.1% in January.
Central banks globally are adopting a cautious 'wait-and-see' approach as they assess the impact of tariffs on growth and inflation.
Analysts suggest further rate cuts may be necessary later this year if economic conditions worsen, though inflation concerns currently limit central banks' flexibility.