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.
The European Union (EU) has agreed on a 21st package of sanctions against Russia, after shelving some proposed measures to appease member states, most...
U.S. strikes on Iran entered a 12th consecutive night, with Iranian officials saying two people were killed in an attack on the Shalamcheh border cros...
Communities in Spain's northwestern Galicia region are bringing back native livestock, including the hardy Cachena breed, to help reduce the risk of d...
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 22nd of July, covering the latest developments you need to know.
The United States has bombed Iran for an 11th consecutive night as the Pentagon says the war’s cost reach $37.5 billion. President Donald Trump threatens a heavy strike on the suspected Pickaxe Mountain nuclear site. Tehran warns that any attack could trigger a wider regional escalation.
Azerbaijani President Ilham Aliyev and German President Frank-Walter Steinmeier have discussed regional developments, transport connectivity, energy cooperation and the Azerbaijan-Armenia peace process during talks in Berlin.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 23rd of July, covering the latest developments you need to know.
Iran is increasingly relying on its northern ports for imports, with officials saying more than 30% of goods now enter the country via Russia and the Caspian Sea rather than through the Indian Ocean.
China's Foreign Ministry has said it is closely monitoring the United Kingdom's nationalisation of British Steel. Prior to the British government fully taking over the loss-making company on Thursday, it was previously owned by Chinese private steelmaker Jingye.
Apple is closing in on Nvidia's position as the world's most valuable publicly traded company, as investors increasingly bet the iPhone maker can turn artificial intelligence into sustained earnings growth.
AI-powered shopping assistant Phia has been accused of using "cookie stuffing" to claim affiliate commissions for purchases it did not generate, according to a Bloomberg investigation. The company says the issue has now been resolved.
The UK government has nationalised British Steel, taking full ownership of the country's only primary steelmaker from its Chinese owners to safeguard the future of the UK's steel industry.
Saudi Arabia is moving crude through the Red Sea port of Yanbu at close to maximum capacity this week, as tensions with Yemen's Houthis add to broader concerns over Gulf shipping routes, according to data and industry sources cited by Reuters.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment