OECD sounds alarm: economic uncertainty in Europe and the US is increasing

The Organization for Economic Cooperation and Development (OECD) warns of increasing economic uncertainty in both Europe and the United States. The growth in the eurozone and the US is in danger of weakening, which may have major consequences for the financial markets. Does this development lead to new challenges, or are there unexpected opportunities ahead?

Trump’s trade policy increases uncertainty

According to BNR’s house economist Han de Jong, Donald Trump’s trade policy is an important cause of current uncertainty. The import duties introduced under his policy have economic consequences and ensure volatility worldwide. Central banks keep a close eye on these developments, because trade barriers can disrupt the world economy.

An example of this is the recent interest rate reduction by the Bank of Canada, whereby explicitly pointed out the uncertainty in the trade environment due to Trump’s policy. This emphasizes how great the impact can be on international economies.

Central banks stand for crucial interest rates

This week the financial markets focus their attention on central banks. The Federal Reserve (FED), the Bank of England and the Japanese Central Bank are about to take important interest rate decisions.

In the US, the FED seems to be holding on to the current interest rate policy for the time being. Inflation remains stubbornly high and the economic prospects are too uncertain to be too relaxed now. Yet this causes political tension. Trump has announced several times that he wants lower interest rates to stimulate the economy. If FED chairman Jerome Powell sticks to his policy, he can count on fierce criticism from Washington.

Opportunities for crypto investors?

In recent weeks, risky assets, such as tech shares and crypto currency, have come under pressure. Yet there is also a chance in every fall. The impact of import duties on the prices seems a short -term effect.

If the Federal Reserve finally decides to lower interest rates and trade barriers disappear, the market can recover explosively. Investors who have accumulated at low levels could then benefit considerably.

Claim € 10 free today and do not pay trading costs over the first € 10,000!

Grab this unique opportunity with Newsbit and Bitvavo by creating an account now via the button below. Only deposit € 10 and receive € 10 free of charge. Moreover, you can act without costs for 7 days over your first € 10,000 in transactions. Start today and take advantage of the growing popularity of Crypto!

Make your account and claim € 10 for free.

Don’t miss this opportunity to take advantage of the growing popularity of Crypto!