Global Central Banks Shift Strategies Amid Economic Uncertainty

The Swiss and Norwegian central banks have adjusted their monetary policies, citing a diminishing inflation outlook. This move highlights a divergence from the Federal Reserve's emphasis on rising U.S. prices, amidst a volatile global setting.

President Donald Trump's unpredictable trade tariffs and escalating tensions between Israel and Iran have created substantial challenges for central banks around the world. These policy changes come after a Federal Reserve meeting led by Chair Jerome Powell, who noted potential price hikes for U.S. consumers due to import tariffs.

Central banks globally, including those of Sweden and the European Central Bank, have responded with rate cuts to accommodate for sluggish growth. With the Bank of Japan maintaining steady rates, economists foresee these tariffs affecting growth and unemployment, while safeguarding most economies from significant inflation impacts.

(With inputs from agencies.)