The US, once a key driver of global growth, now risks becoming a drag on the world economy as President Donald Trump’s sweeping tariff policies ripple through financial markets. With growth slowing and inflation fears rising, central banks across the globe are sounding alarms over the uncertainty ahead. The Bank of England, holding rates steady on Thursday, directly pointed to Trump’s trade moves as a threat to global stability. Similar warnings echoed from the Bank of Japan and the European Central Bank, with ECB President Christine Lagarde cautioning that retaliatory tariffs could dent growth and push inflation higher. Meanwhile, the Swiss National Bank and Sweden’s Riksbank highlighted growing risks from abroad, underscoring just how much the world is bracing for impact.DataThe number of Americans filing for unemployment benefits edged up slightly last week, with initial claims rising by 2,000 to a seasonally adjusted 223,000 for the week ending 15 March, according to the Labor Department. Although claims have varied between 203,000 and 242,000 this year, indicating a stable labour market with low layoffs and moderated hiring, the outlook is complicated by increasing trade tensions and reductions in government spending. Notably, the report revealed that more people are remaining on jobless rolls longer compared to the same period last year, hinting at potential challenges in re-employment despite the overall resilience of the labour market.
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