Tariffs threaten Fed with real inflation headache, BIS says

Resurgent inflation in US could unfold as the world economy reels from Donald Trump's disruptive trade policies, the Bank for International Settlements warned.

- Bloomberg

That bleak scenario was described by General Manager Agustin Carstens, presenting an annual report that catalogued how existing global vulnerabilities have been further exposed by the American president's actions since taking office in January. "We were meant to have a soft landing — everything was going according to plan," the former Mexican central-bank chief told reporters. "Then we had this very substantive period of volatility with the threat that tariffs would make more difficult convergence towards 2% in some countries."