ECB Cuts Rates Again, While the Fed Holds the Line

Tariff shock, Fed independence, Election promises, ECB cuts, RBA to cut in May

By Dr Shane Oliver, Chief Economics and Head of Investment Strategy at AMP.   Investment markets and key developments   Share markets were mixed over the last week with uncertainty remaining high around the impact of Trump’s tariffs but no big new negative announcements. For the holiday shortened week though US shares fell 1.5% with Fed Chair Powell indicating that the Fed won’t be rushing in with rate cuts to support markets and Trump reignitin…

ECB Cuts Rates Again, While the Fed Holds the Line

On Thursday 17 April, the European Central Bank announced a reduction in its rates from 2.5% to 2.25% in an attempt to compensate for the exceptional uncertainty that has affected the economy since the introduction of customs duties by Donald Trump. A measure that the US President is demanding from his Central Bank, the Fed, which is refusing to do so for the time being, notes the Wall Street Journal.