Fed, Asian Central Banks Cautious Amid Trade Uncertainty

Federal Reserve officials and central banks in Asia are expressing heightened concern over global economic uncertainty resulting from President Donald Trump’s tariffs, which have led businesses to cut back on hiring and spending. The Fed has kept its interest rate steady at 4.25%-4.5% and signaled a cautious, data-driven approach, with Chair Jerome Powell acknowledging that tariffs could both raise inflation and slow growth. In Southeast Asia, Bank Negara Malaysia is prepared to cut rates if conditions deteriorate and has introduced measures to inject liquidity into the financial system, while business sentiment in Malaysia has turned bearish. Central banks in Thailand and Malaysia have both cited significant economic uncertainty, awaiting more information on U.S. trade policy impacts before changing monetary policy. The overall stance among global central banks is one of caution as they balance downside risks to growth against inflation concerns. The Bangko Sentral ng Pilipinas is no longer highlighted among the main actors.