Main challenge for economics and central banks AiOFM.Net

Senka economic storm float, covered with bright red and unpredictable pragmatism. “Assistant” – this neologism that sounds like a warning – amounts to increasing concern in front of the trade war with unforeseen consequences. Between Revival and Restrictions, the Fed and the Bank of England remain stuck between the rates that adapt and threaten inflation. How to avoid domino effect? The answer requires more than manuals for the economy: tactical courage.

Trumpcession: When protectionism becomes economic boomerang

Promises Donald Trump Aggressive Customs Tariffs are not simple rhetoric. They act as a catalyst, transform fears in tangible reality.

In February 2025. year, the intention index for the purchase of the conference committee, doubled, revealing a distrustful distrust of four years. American consumers, historical growth motor, slows down their expenses. Alarm signal: When self-confidence varies, the recession is viewed.

However, the most suitable effect could come from import costs. High prices of foreign products would increase prices, feeding but the persistence of inflation.

Nigel Green, Devere, samiriva dilemma: “Inflatives of pressure and economic slowdown generate vices. Fed, he is used to juggling cycles, find them faced with a fragile balance. Risk prices? Choice is Corneli.

In parallel, the trump appears indifferent to shocks on the stock market. Even worse, the decline in production is sometimes considered necessary for evil exchanges of “rebalance”.

Dangerous logic, according to experts: Extended trade war could stifle the entire sectors, from production to logistics. Fed, announcing its rates decision on Wednesday, will need to decide between the emergency and care.

Banque from England and Fed: Balancial game under pressure

Threadneedle Street and Fed share a common scenario, but not the same tools. At the end of 2024. year, the Bank of England predicted controlled inflation and rates under 4% in 2025. Years.

Today, the British Master’s rate stagnates at 4.5%, slightly exceeding the Fed (4.25% – 4.5%). Minimal, but revealing the gap: two institutions must address weakened labor markets and employers on defensive.

In the UK, construction and production sectors see climbing unemployment, while releasing increases. A similar situation across the Atlantic, where vacancies become scarce.

Difference? The impact of the Trump prices on the American economy is more direct, exposing the Fed to the risk of overheating. The Bank of England is afraid of training performance: increasing the British import costs if the EU replies to American measures.

However, the glow exists: borrowing. Lower prices could alleviate households and enterprises, but at what price? “Take the lead, don’t follow,” he insists on the green. The proactive approach would include a gradual decline, not drastic measures later. However, the laying would be assessed the actual impact of prices. On Thursday, the Bank of England will return its judgment, under investor’s concern. Even The elonal musk could be a victim, and Tesla is in question.

Give up

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