Fear of a tariff ‘Trumpcession’ puts pressure on Bank and Fed over interest rates

<p>A trade war could push up inflation when both the UK and US economies really need cheaper borrowing. So what’s a central bank to do?</p><p>Monetary policymakers on both sides of the Atlantic will be considering how seriously to take Donald Trump’s threats of an all-out trade war as they give their verdict on the path of interest rates this week.</p><p>The Federal Reserve, the US ­central bank, will examine the prospect of a <a href="https://www.theguardian.com/business/2025/mar/10/risk-of-trumpcession-rising-economists-say-as-global-markets-fall-donald-trump">“Trumpcession”</a> brought on by tariffs that send import costs rocketing and convince consumers, already shellshocked from the <a href="https://www.theguardian.com/business/cost-of-living-crisis">cost of living crisis</a>, to stop spending.</p> <a href="https://www.theguardian.com/business/2025/mar/16/fear-of-a-tariff-trumpcession-puts-pressure-on-bank-and-fed-over-interest-rates">Continue reading...</a>