The latest update to the Brookings-FT Tiger index reveals a mixed picture, with the financial index declining and private-sector confidence crumbling even as macroeconomic data (which lag the other indicators) suggest a more benign scenario. Making matters worse, as the costs of tariffs are passed on to US consumers and drive up inflation, the US Federal Reserve's ability to support the economy and forestall financial turmoil will be constrained. As the Trump tariffs trigger a surge of protectionist measures around the world, the era of increasingly free, unfettered trade has come to a crashing end.
Author: Eswar Prasad and Caroline Smiltneks
Published at: 2025-04-20 21:00:00
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