Global Interest Rate Limbo Reigns After 150 Days of Trump

Multiple central banks are set to keep interest rates frozen this week while continuing to gauge the impact of trade disruptions instigated by US President Donald Trump.

- CRAIG STIRLING

From Washington to London, wary officials in countries that account for two-fifths of the global economy may display a collective sense of paralysis as they assess risks to inflation and growth from tariffs and stop-start commerce flows. Renewed tensions in West Asia will only add to their conundrum.

In all, central banks responsible for six of the 10 most-traded currencies in the world are set for decisions. Among them, only those in Sweden and Switzerland are anticipated by economists to tweak rates, with small cuts predicted for each.

Investors will focus most on the Federal Reserve decision on Wednesday, the eve of Trump's 150th day in power. With policymakers signaling an extended hold on rates, investors and economists will look to Chair Jerome Powell for clues on what might eventually prompt the central bank to make a move, and when.

US and Canada
US economic data in the holiday-shortened week include the latest readout of consumer demand. Economists project a decline in May retail sales, primarily due to fewer motor vehicle purchases. Excluding autos and gasoline, however, Tuesday's report is likely to show sales firmed after a soft start to the second quarter.