Global Central Banks Grapple with Policy Paralysis Amid Trump’s Return
Central bankers at the ECB's Sintra summit shifted focus from monetary strategy to crisis management as Trump-era policies disrupt global trade. Fed Chair Powell, ECB President Lagarde, and peers now face inflation-growth dilemmas directly tied to WHITE House actions.
Powell signaled prolonged Fed caution despite cooling US growth, with Core inflation and weak consumption creating policy gridlock. "The Fed is trapped in a twilight zone," says Bloomberg's Stuart Paul, "where every rate cut debate becomes a referendum on political risk."