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.
U.S. President Donald Trump has called it “a disgrace” that Ukraine has resumed attacks on Russian oil refineries. Attacks are continui...
The U.S. has banned government employees working in Saudi Arabia from using airports in the country without special authorisation. It com...
France is preparing for a fresh wave of nationwide demonstrations this weekend as rising living costs, educatio...
The Saudi-led coalition said early Thursday that it intercepted and destroyed a drone over Saudi Arabia’s Eastern Province.
Yemen’s Houthis have claimed responsibility for the recent drone and missile strikes on Saudi Aramco facilities in Dhahran and Riyadh and at King Khalid International Airport in Saudi Arabia, vowing to carry out more attacks in the coming days.
Ukraine's soldiers have had their access to Starlink satellite internet restricted. Kyiv's troops use the terminals, made by Elon Musk's SpaceX, to pilot drones. A source in Ukraine's Defence Ministry said the restrictions would make it harder for Kyiv's army to down Russian drones.
The U.S. has banned government employees working in Saudi Arabia from using airports in the country without special authorisation. It comes after a deadly Houthi strike on Riyadh's King Khalid International Airport killed at least 13 people last week.
Ukraine is set to restart attacks on Russian oil refineries following a two-day pause, President Volodymyr Zelenskyy said, amid growing tensions with Washington over energy strikes and U.S. military support.
U.S. President Donald Trump has lifted sanctions on Russian diesel exports and announced a Russia-Ukraine energy ceasefire aimed at easing fuel prices ahead of November’s midterm elections. But can Moscow deliver and will the move will bring meaningful relief to markets?
Taiwan plans to buy 30 per cent of Alaska LNG's annual output and invest up to $4.4 billion in the project, but binding contracts and financing remain unresolved as the U.S. pushes to expand energy exports to Asia.
Asian stocks plunged to their lowest level in more than two months on Tuesday as advances by Chinese chipmakers rattled investor confidence in the artificial intelligence boom, despite soaring global semiconductor sales.
Artificial intelligence investment is helping sustain global growth at around 3 per cent, with Asia poised to reap major benefits. But soaring energy costs, unequal investment and growing pressure on young workers threaten to leave some economies behind.
Uzbekistan and Russia have a portfolio of more than 200 joint projects worth almost $6 billion, as the two countries continue to expand regional and business ties. The projects were discussed during the third meeting of the Council of Regions of Russia and Uzbekistan, held in Fergana, Uzbekistan.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment