April 9, 2025
United States:
Fed’s Kashkari Sees a Higher Bar for Rate Cuts With Tariffs
Federal Reserve Bank of Minneapolis President Neel Kashkari said the central bank is less likely to lower interest rates in the face of tariffs given their inflationary impact, even if the economy begins to deteriorate.
Kashkari described President Donald Trump’s tariffs as “much higher and broader than expected,” adding he anticipates the levies will lower investment and economic growth as well as push up inflation “at least in the near term.”
Europe:
ECB’s Villeroy Says Tariffs Favor Cutting Rates Again ‘Soon’
The European Central Bank should lower interest rates “soon” as US President Donald Trump’s tariffs and the fallout on global markets favor such a move, according to Governing Council member Francois Villeroy de Galhau.
The trade war will have a “non-negligible” direct impact on the economy that will take about 0.25 percentage point off growth this year, the Bank of France chief warned.
Asia:
BOJ’s Ueda Highlights Uncertainty While Keeping Rate Hike Stance
Bank of Japan Governor Kazuo Ueda highlighted growing uncertainties stemming from tariff measures while also reiterating the BOJ’s existing policy stance that it will raise the benchmark interest rate if its economic outlook is realized.
“Japan’s economy and inflation have moved in line with our outlook so far,” Ueda said in a speech at a financial conference in Tokyo Wednesday.
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