Global markets were shaken after President Trump unexpectedly announced a temporary freeze on U.S. trade tariffs, slashing rates to 10% for the next 90 days.
The move, posted directly on X, is part of what the administration describes as a recalibration of trade strategy, though the specifics remain murky.
Negotiations with international partners—including Canada and Mexico—will continue behind closed doors during the freeze. The abrupt shift left analysts questioning the stability of U.S. trade policy, with some calling it a short-term political maneuver rather than a lasting economic solution.
Market watchers were quick to note cautious investor behavior, pointing to thin trading volumes and mixed reactions. Some, like Chris Stadele, warned that the pause changes little for companies facing long-term uncertainty. Others, such as Amarjit Sahota, described the announcement as reactive and lacking strategic clarity.
Despite the tariff rollback, the underlying tension hasn’t eased. Economist Nouriel Roubini dismissed the idea that the Federal Reserve would intervene in response, suggesting the central bank is unlikely to accommodate erratic trade moves with rate cuts. As he put it, monetary policy won’t be used to cushion political gambles.
The clock now ticks toward a three-month deadline, with businesses and markets left to navigate the unknown.
The fallout from the Federal Reserve’s latest decision to hold interest rates steady has reached the political arena, with U.S. President Donald Trump launching a fierce attack on Chair Jerome Powell.
The Federal Reserve left its target range at 4.25–4.50 percent for a fourth straight meeting and quietly dialed back how much easing it expects through 2026.
Britain’s cost-of-living pulse barely budged in May, with headline CPI stuck at 3.4%—the same pace (after correction) seen in April, the Office for National Statistics said on Wednesday.
After wrapping up a two-day policy meeting, the Federal Reserve left its benchmark rate unchanged near 4.4 percent—exactly what markets had penciled in.