Donald Trump’s decisive win of the U.S. presidential election has world leaders already preparing for how his next administration will shape the global economy.
In China, factories ramped up shipments ahead of Christmas holidays and likely in anticipation of worsening trade tensions. Emerging markets were hit hard as the dollar and U.S. yields soared. And back in the U.S., economists predict Trump’s proposals — particularly on tariffs — would stoke inflation and depress growth.
Speaking after the Federal Reserve cut interest rates by a quarter point, Chair Jerome Powell said Trump’s re-election will have “no effect” on the central bank’s policy decisions in the near-term. The Bank of England also lowered borrowing costs for the second time this year.
