Global Rate Path Veers Higher in Wake of Another Trump Shock

Donald Trump’s second big shock to the world economy since he returned to the White House looks increasingly likely to force central banks into a new round of tightening.

The US president’s war on Iran has already produced an initial bout of inflation, with further energy-related pressure in the pipeline, putting global policymakers on alert for possible interest-rate hikes. That contrasts with this time last year, when his so-called Liberation Day tariffs left officials bracing for a synchronized hit to growth.