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Global Markets on Edge as Divergent Monetary Policies Emerge

Global Markets on Edge as Divergent Monetary Policies Emerge

Published:
2025-06-19 13:52:02
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The Federal Reserve maintains its cautious stance, holding rates steady at 4.25-4.5% despite softening economic indicators. U.S. GDP projections for 2025 have been revised downward to 1.4%, while inflation persists and retail activity wanes. Chair Powell's emphasis on needing clearer signals before acting leaves markets anticipating only two potential cuts this year.

Europe charts a different course, with Switzerland's central bank executing a bold 25 basis point reduction to 0%. This aggressive MOVE comes as Swiss inflation turns negative, reviving speculation about possible negative rate territory. The policy divergence underscores growing fragmentation in global economic responses to slowing growth and disinflationary pressures.

|Square

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