Overview

• Global equity markets have dropped 6% since April 2 when President Trump announced sweeping tariffs, with the U.S. dollar falling to multi-year lows and gold reaching record highs.
• IMF Managing Director Kristalina Georgieva highlighted unprecedented trade policy uncertainty, warning smaller economies are particularly vulnerable to external shocks.
• The IMF maintains that while global economic growth will slow, a full-blown recession is not imminent, provided governments act decisively to stabilize markets.
• Trump’s public criticism of Federal Reserve Chair Jerome Powell and discussions about firing him have raised concerns about the central bank’s autonomy and further weakened investor confidence in U.S. assets.
• G7 nations remain divided on how to respond to U.S. trade policies, complicating efforts for coordinated action to mitigate global financial instability.