Tariffs
Tariffs will raise US prices throughout 2025 – Fed governor
Kugler says progress on core goods inflation has been reversed and trade policy could make things worse
A fractured monetary system
US policy is encouraging a transition away from a dollar-led, rules-based order
Reflections on the international financial situation
Former IMF head Jacques de Larosière writes that markets are blind to Trump's policy shocks that are fragmenting the monetary ‘system’, causing strain in the eurozone and may result in stagflation
Dovish Banxico minutes point to another 50bp cut in June
Weak domestic growth and tariff-hit foreign demand suggest further easing on horizon
Bank of Korea makes 25bp cut and lowers GDP forecast again
Central bank hints at further easing as weak domestic recovery and US tariffs dim growth outlook
Trends in reserve management 2025: survey results
Insights on strategies in anticipation of tariffs, interest rate divergence and geopolitical risk, FX diversification and de-dollarisation, as well as bitcoin in reserves, FX interventions and gold
US faces mounting costs if trade war escalates – study
Fed economists monitor effect on asset and consumer goods prices under blanket 25% tariff
Tariffs not the only policy causing uncertainty – Fed presidents
Officials highlight risks from US administration’s approaches to deregulation and immigration
Maurice Obstfeld on the trade war’s damage to the monetary system
The former IMF chief economist speaks about Trump’s chaotic economic policies, the erosion of Fed independence and dollar stability, difficult policy trade-offs for central banks, and the threat to the Bretton Woods institutions
ECB says tariff shocks ‘continue to reverberate’
Stability review says risk of slowdown has “increased markedly”, though banks are better placed than in 2008
Banks should ‘regularly’ assess clients’ exposure to tariffs – ECB
Rising trade tensions threaten financial stability, bank’s economists say
Romania opts to hold, citing domestic and global uncertainty
Central bank cites fluctuating commodity prices, tariff risks and volatility resulting from national politics
Bank of Mexico puts growth before prices with rate cut
Economists say decision reflects concerns about possible tariff-induced recession
Dallas Fed study adds to official scepticism of US tariffs
Research says potential for domestic gains will depend on other countries not responding
Lenders to export-oriented firms may face losses – Danish governor
Nødgaard also recommends that banks improve their cyber defence plans
German and Spanish governors criticise US policies
Nagel defends Fed independence, while Escrivá cautions against excessive deregulation
BoE to consult on promoting clearing for gilt repo market
Deputy governor also takes aim at bilateral repo haircuts and cross-CCP netting
Tariffs already raising US inflation – Fed study
Researchers say trade policies were starting to affect consumer prices in March
EBRD outlook turns gloomy after US tariffs
“Not a very happy picture” for world economy, says institution’s chief economist
Hedge funds burned as Hong Kong dollar bets implode
However, market participants still seem satisfied with the HKMA’s commitment to defending currency peg
Albania, Norway, Sweden hold rates, Poland cuts by 50bp
Falling food and energy prices amid high trade uncertainty prompt cautious approaches