What is the most significant risk in the world market now? It is the US president, Philippine central bank governor Benjamin Diokno advised a panel discussion in Singapore, together with the crowd bursting into laughter in his blunt answer.
The US-China trade war — together with Trump objecting to a number of the policies which have driven China’s rapid rise to become the planet’s second-largest market — has rippled through emerging Asia and threatens to begin a worldwide downturn.
“Anything Trump does is driving the markets. It impacts everybody else,” stated Michael Ricafort, an economist in Rizal Commercial Banking Corp. at Manila.
Trump, who wishes to see more powerful US economic expansion before his re-election bid this past year, has been vocal in favoring more competitive monetary-policy easing.
Last week that he tweeted that the US Federal Reserve must cut prices to less or less. On Wednesday, following the Fed reduced its benchmark rate of interest for another meeting in a row, cutting with a quarter-point to 1.75%-2%, Trump was unimpressed: “No’courage,’ no feeling, no eyesight!” He tweeted.
Fed chief Jerome Powell has emphasized the need for the US central bank to stay separate from government pressure. Critics have described Wednesday’s movement as a”hawkish cut,” highlighting that the Fed sees these movements as insurance for a market that remains mostly healthy. Three Fed members dissented in the decision to cut, implying an odd quantity of discord on the policy board.