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.
A major forest fire in northern Morocco is now largely under control, though efforts to fully extinguish it are still underway, the national water and...
Supporters of the ruling Serbian Progressive Party (SNS) threw flares and firecrackers at anti-government protesters in Novi Sad on Wednesday evening,...
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 14th of August, covering the latest developments you need to k...
WhatsApp said Russia was trying to block its services because the social media messaging app owned by Meta Platforms META.O offered people's right to ...
Pakistan will create a new force in the military to supervise missile combat capabilities in a conventional conflict, apparently a move to match the n...
A major forest fire in northern Morocco is now largely under control, though efforts to fully extinguish it are still underway, the national water and forests agency (ANEF) said on Wednesday.
Supporters of the ruling Serbian Progressive Party (SNS) threw flares and firecrackers at anti-government protesters in Novi Sad on Wednesday evening, according to Reuters, prompting police to intervene to end the standoff, a major escalation of nine-month-long protests in Serbia.
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 14th of August, covering the latest developments you need to know.
WhatsApp said Russia was trying to block its services because the social media messaging app owned by Meta Platforms META.O offered people's right to secure communication, and vowed to continue trying to make encrypted services available in Russia.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
A powerful eruption at Japan’s Shinmoedake volcano sent an ash plume more than 3,000 metres high on Sunday morning, prompting safety warnings from authorities.
According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
A resumption of Iraq’s Kurdish oil exports is not expected in the near term, sources familiar with the matter said on Friday, despite an announcement by Iraq’s federal government a day earlier stating that shipments would resume immediately.
A magnitude 5.2 earthquake struck 56 kilometres east of Gorgan in northern Iran early Sunday morning, according to preliminary seismic data.
Bitcoin surged to a new all-time high as expectations grow for U.S. interest rate cuts and regulatory moves favouring crypto investment, boosting investor confidence in the sector.
The U.S. budget deficit surged nearly 20% in July to $291 billion despite a significant increase in customs duty collections from President Donald Trump’s tariffs, as government spending outpaced revenue growth.
The National Carrier of Türkiye, Turkish Airlines has announced an increase in the number of its weekly flights to China.
Norway's $2 trillion sovereign wealth fund said on Monday it is terminating contracts with asset managers handling its Israeli investments and has divested parts of its portfolio in the country over the situation in Gaza and the West Bank.
The Syrian Civil Aviation Authority has signed a $4 billion agreement with an international consortium last week (6 August), including companies from Türkiye, Qatar and the United States, aiming to expand Damascus International Airport.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment