Global economic calculations have undergone profound changes this week with the new Trump administration. The US Federal Reserve (Fed) announced that it is reducing the number of interest rate cuts due to increased attention to retirements in Canada, budgetary regulation of rates, and secret foreign exchange transactions.
As expected, the Fed cut interest rates on Wednesday, and year-end central bank meetings from Ottawa and Frankfurt to Tokyo and London showed growing uncertainty in the new year ahead of Donald Trump's entry into the White House.
Of course, Fed officials have revised their forecasts for rate cuts amid steady inflation and assessed how Trump's planned tariffs, tax cuts, and immigration restrictions could affect economic policy.
As a result, the US central bank predicts higher economic growth next year but also significantly higher inflation.
