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.
Jerome Powell, chairman of the US Federal Reserve, from left, Kazuo Ueda, governor of the Bank of Japan (BOJ), Christine Lagarde, president of the European Central Bank (ECB), and Andrew Bailey, governor of the Bank of England (BOE), walk the grounds during the Kansas City Federal Reserve's Jackson Hole Economic Policy Symposium in Moran, Wyoming, US, on Friday, Aug. 22, 2025. Powell carefully opened the door to an interest-rate cut in September, pointing to rising risks for the labor market even as worries over inflation remain. Photographer: David Paul Morris/Bloomberg
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