The uncertainty generated by President Trump’s promises to impose tariffs and carry out mass job cuts threaten the world economy’s soft landing after years of high inflation and interest rates, the Bank for International Settlements has warned. The BIS, known as the “central bank of central banks”, said it still expected the United States and most advanced economies to avoid recession this year but sounded the alarm over the impact Trump’s rhetoric could have on financial markets and the economy. Frank Smets, deputy head of the BIS monetary department, said: “Policy uncertainty on tariffs, [US] fiscal policy, immigration and regulation … work like a negative demand shock. They would have negative effects on spending, investment — and we see some signs of that.”“If tariffs

Source: The Times March 11, 2025 12:04 UTC