In the days following President Donald Trump’s mid-week decision to pause the stiffest of US tariffs — save for super-high duties on China — global financial markets remained turbulent, with investors seeking safe harbor and some central banks lowering interest rates.
Economic data in the US showed inflationary pressures diminished before broad tariffs kicked in on trading partners as well as certain sectors. Fresh consumer sentiment data illustrated increasing stress on Main Street, threatening the biggest part of the economy and helping explain why Wall Street see greater odds of a recession.