Global markets react to Fed minutes trade policy speculations
(MENAFN) Global markets exhibited mixed performance on Wednesday as the Federal Reserve's minutes highlighted heightened upside risks to the US inflation outlook. Simultaneously, analysts speculate on President-elect Donald Trump’s potential move to declare a national economic emergency, paving the way for additional tariffs.
Reports from CNN suggest Trump may invoke the International Economic Emergency Powers Act (IEEPA) to unilaterally regulate imports and introduce a new tariff structure. However, a final decision has yet to be made as Trump’s team explores alternative legal strategies.
Analysts warn that Trump’s policy announcements could elevate risk perception globally, with the proposed tariffs possibly igniting a trade war and exacerbating inflationary pressures.
The Federal Open Market Committee (FOMC) meeting minutes, while not addressing Trump directly, indicated that Fed officials expect inflation to gradually decline toward the 2 percent target. However, they acknowledged that reaching this goal might take longer due to potential shifts in trade and immigration policies.
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