The Bank for International Settlements (BIS) has warned that U.S. President Donald Trump’s trade war and deregulation plans could disrupt financial stability, fuel inflation, and increase market volatility, posing challenges for global central banks.
The Bank for International Settlements (BIS) has issued its first public warning about the risks posed by Donald Trump’s economic policies, citing trade tensions, financial deregulation, and fiscal uncertainty as key threats to global stability.
Speaking in Mexico City, BIS chief Agustin Carstens highlighted the growing concerns among central bankers, stating that Trump’s approach to trade, fiscal policy, and immigration could trigger economic disruptions.
“Such pervasive policy uncertainty will affect central banks in several ways,” Carstens said, warning that market instability could worsen.
🔹 Slower Economic Growth – Businesses may delay investment and households could hold off on major purchases due to policy unpredictability.
🔹 Market Volatility – Currency fluctuations and asset price swings are expected to intensify as investors navigate tariff disputes with Canada, Mexico, and China.
🔹 Rising Inflation – A weaker currency and financial turbulence could drive up inflation, forcing central banks to intervene.
🔹 Debt Risks – Loose fiscal policies could lead to higher debt levels, potentially destabilizing global financial markets.
Carstens also warned of a widening gap between U.S. and global interest rates, driven by America’s stronger economic performance compared to other major economies. If this trend continues, it could disrupt capital flows, weaken foreign currencies, and create imbalances in global financial conditions.
“An abrupt repricing of public debt could put financial stability at risk,” Carstens cautioned, raising concerns about potential debt crises in emerging markets.
Trump’s deregulation agenda has sparked fears of a weakened financial oversight system, particularly in Europe, where regulators worry about a global race to loosen financial supervision.
While the BIS has traditionally refrained from direct political criticism, its latest warning reflects the growing unease among global central banks as they attempt to navigate the uncertainty of Trump’s second term.
As financial leaders prepare for upcoming policy decisions, the lasting impact of Trump’s economic strategy remains uncertain, but the warning from the world’s top central bank body signals that the stakes are higher than ever.
Azerbaijan and the United States signalled closer economic ties on Monday (9 February) as President Ilham Aliyev hosted a delegation from the U.S. Cha...
Cuban aviation authorities have warned airlines of jet fuel shortages at nine airports, including Havana’s José Martí International Airport, from ...
“Peace is not just about signing treaties - it’s about communication, interaction and integration,” Sultan Zahidov, leading adviser at the AIR C...
Representatives of Azerbaijan’s civil society have sent an open letter to U.S. Vice President JD Vance, urging support for the right of return of We...
The European Union has proposed extending its sanctions against Russia to include ports in Georgia and Indonesia that handle Russian oil, the first...
“Peace is not just about signing treaties - it’s about communication, interaction and integration,” Sultan Zahidov, leading adviser at the AIR Center, told AnewZ, suggesting U.S. Vice President JD Vance's visit to the South Caucasus could advance the peace agenda between Azerbaijan and Armenia.
Buckingham Palace said it is ready to support any police investigation into allegations that Prince Andrew shared confidential British trade documents with late sex offender Jeffrey Epstein, as King Charles expressed “profound concern” over the latest revelations.
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 10th of February, covering the latest developments you need to know.
Türkiye experienced one of its most severe droughts in the past half century in 2025, with conditions now showing signs of becoming long-term and structural, climate expert Mikdat Kadioglu told Anadolu.
U.S. President Donald Trump has criticised American freestyle skier Hunter Hess after the athlete said he felt conflicted about representing the United States at the Winter Olympics in Italy, sparking a public clash that highlights growing political tensions surrounding the Games.
U.S. skiing great Lindsey Vonn underwent surgery in an Italian hospital on Sunday after her attempt to win Olympic downhill gold ended in a violent crash just seconds into the race at the Milano Cortina Winter Games.
JD Vance arrived in Armenia on Monday (9 February), becoming the first sitting U.S. Vice President to visit the country, as Yerevan and Washington agreed to cooperate in the civil nuclear sector in a bid to deepen engagement in the South Caucasus.
The death toll from the collapse of two residential buildings in the northern Lebanese city of Tripoli has risen to 15, state media said on Monday, as rescue teams wrapped up search operations and officials warned that more people could still be missing.
António José Seguro’s decisive victory over far-right challenger André Ventura marks an historic moment in Portuguese politics, but analysts caution that the result does not amount to a rejection of populism.
Türkiye’s national energy company, TPAO, has struck a new cooperation deal with U.S. energy giant Chevron, signing a memorandum of understanding to explore joint oil and gas exploration and production opportunities, the Turkish Energy and Natural Resources Ministry announced on Thursday.
Wall Street ended sharply lower on Tuesday as investors worried about artificial intelligence (AI) creating more competition for software makers, keeping them on edge ahead of quarterly reports from Alphabet and Amazon later this week.
U.S. stock markets finished mixed on Wednesday (28 January) as investors reacted calmly after the Federal Reserve left interest rates unchanged, a decision that had been widely expected and largely priced in.
The S&P 500 edged to a record closing high on Tuesday, marking its fifth consecutive day of gains, as strong advances in technology stocks offset a sharp selloff in healthcare shares and a mixed batch of corporate earnings.
Chevron is in talks with Iraq’s oil ministry over potential changes to the commercial framework governing the West Qurna 2 oilfield, one of the world’s largest producing assets, after Baghdad nationalised the field earlier this month following U.S. sanctions imposed on Russia’s Lukoil.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment