Economics Daily

Global Rate Outlook Tilts Higher After Trump War Shock

Trump’s second big shock to the world economy since he returned to the White House looks increasingly likely to force central banks into a new round of tightening.
Fed Chair Jerome Powell, BOJ Governor Kazuo Ueda, ECB President Christine Lagarde and BOE Governor Andrew Bailey at the the Kansas City Federal Reserve’s Jackson Hole Economic Policy Symposium in August 2025.Photographer: David Paul Morris/Bloomberg
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I’m Zoe Schneeweiss, an economics editor in Frankfurt. Today we’re looking at the global central banks’ interest-rate trajectories. Send us feedback and tips to ecodaily@bloomberg.net. And if you aren’t yet signed up to receive this newsletter, you can do so here.

Trump’s second big shock to the world economy since he returned to the White House looks increasingly likely to force central banks into a new round of tightening.