Donald Trump’s threatened trade war is driving a wider wedge between the world’s biggest central banks, as the US Federal Reserve holds off rate cuts even as growth concerns hang heavily over other economies.
Later on Thursday, the Bank of England is expected to become the latest central bank to cut interest rates this year.
The Fed, however, is taking a different approach. It held borrowing costs last week, with chair Jay Powell indicating interest rates will remain on hold as the strong US economy enables policymakers to wait and see how tariffs and Trump’s other policies impact inflation.
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