The financial landscape is facing a turbulent week as policymakers, corporations, and investors react to a series of critical developments shaping the global economy. From interest rate decisions and trade tariffs to inflation data and corporate shifts, here’s a roundup of the top stories making waves.

Fed Expected to Hold Rates Amid Growth Concerns

The Federal Reserve is widely anticipated to maintain interest rates as officials assess growing economic risks. With concerns about slowing economic growth, inflation moderation, and the looming debt ceiling, investors are closely watching for any policy signals from the Fed that could impact future rate decisions. There is also speculation that the Fed may tweak its portfolio runoff strategy to mitigate market disruptions as economic uncertainty persists.

Trump Aides Plan Trillion-Dollar Tariffs for ‘Liberation Day’

Former President Donald Trump’s economic team is reportedly preparing an extensive tariff package targeting imports worth trillions of dollars. The move, dubbed ‘Liberation Day,’ could reshape global trade dynamics and impact key sectors, including technology, manufacturing, and consumer goods. Markets are wary of the potential ripple effects on inflation, supply chains, and economic growth.

Mortgage Demand Dips as Rates Rise for the First Time in Nine Weeks

After nearly three months of declining interest rates, mortgage rates have edged higher, leading to a pullback in weekly mortgage demand. Homebuyers and refinancers are pausing amid the uncertainty, while the housing market continues to navigate affordability challenges and fluctuating borrowing costs.

EU Excludes US, UK, and Turkey from €150 Billion Rearmament Fund

In a move that underscores shifting geopolitical priorities, the European Union has decided to exclude the US, UK, and Turkey from its €150 billion rearmament fund. The decision reflects growing efforts within the EU to strengthen its defense capabilities independently while managing complex relationships with global allies.

Euro-Zone Inflation Revised Down as ECB Considers Next Steps

Eurozone inflation figures have been revised downward, fueling speculation that the European Central Bank (ECB) may either cut interest rates or pause further hikes. With economic pressures mounting, investors are looking for clarity on the ECB’s next steps and their impact on currency markets and consumer spending.

Bank of Japan Holds Rates, Cites Tariff Concerns

The Bank of Japan (BoJ) has opted to keep its monetary policy unchanged, citing concerns over potential economic disruptions from new global tariffs. BoJ Governor Kazuo Ueda emphasized the need for proactive policymaking to ensure stability, suggesting that Japan is closely monitoring external risks before making adjustments.

Tensions Rise as Ukraine and Russia Exchange Air Strikes

Geopolitical tensions continue to escalate as both Russia and Ukraine report fresh air attacks following a phone call between Russian President Vladimir Putin and former US President Donald Trump. Meanwhile, Ukrainian President Volodymyr Zelenskyy has announced plans to speak with Trump, highlighting ongoing diplomatic efforts to navigate the crisis.

Oil Market in Focus as US Crude Stockpiles Surge

US crude stockpiles have increased by 4.6 million barrels over the past week, according to the American Petroleum Institute (API). The rise in inventory levels has prompted discussions about energy demand trends, global supply, and the potential impact on oil prices.

Corporate Shake-Ups: Layoffs at Morgan Stanley, Growth at Tencent

Morgan Stanley has announced plans to lay off approximately 2,000 employees as part of a cost-cutting initiative, reflecting broader concerns about profitability in the banking sector. Meanwhile, Tencent has reported its fastest growth in a year, fueled by a series of successful gaming releases that have bolstered its revenue streams.

China’s Economic Slowdown Weighs on Ping An’s Profits

Chinese financial giant Ping An has reported lower-than-expected profits, citing economic headwinds and a slowdown in China’s broader economy. The report adds to growing concerns about China’s post-pandemic recovery and its implications for global markets.

Turkish Markets Plunge Following Opposition Leader’s Arrest

Turkish financial markets have nosedived after the detention of President Recep Tayyip Erdoğan’s main political rival. The development has intensified investor fears about political stability and economic uncertainty in Turkey, further exacerbating pressures on the lira and stock market.

With interest rate decisions, trade policies, and geopolitical conflicts shaping market sentiment, investors and businesses will be keeping a close eye on upcoming developments. Central bank signals, corporate earnings, and political maneuvers will play a crucial role in determining the trajectory of the global economy in the coming weeks.