The global economy faces a “pivotal moment,” says the BIS Central Bank

Written by Mark Jones

LONDON (Reuters) -Tensions related to the geographical risks engraved in exposure to deep rift lines in the global financial system, the Central Bank’s umbrella body.

The outgoing president, who is often called the Central Bank of Central Banks, said that the trade war driven by the United States and other political transformations was outperforming the long economic system.

He said that the global economy was in a “pivotal moment”, as it enters a “new era of increased uncertainty and the inability to predict”, which was testing the confidence of the public in institutions, including central banks.

The bank’s report was published slightly more than a week before the deadline for the commercial tariff of US President Donald Trump on July 9 and comes six months after extensive geopolitical disturbances.

When asked about Trump’s criticism of the US Federal Reserve, Jerome Powell, who included Trump describing the Fed is “stupid”, he was not very crucial.

“It is expected in some points of time that there will be friction,” former Mexican governor Carrests told reporters, referring to the relationship between governments and central banks. “It is almost by design.”

Decrease

The annual BIS report, which was published on Sunday, is seen as an important measure of central bankers’ thinking in view of the regular meetings of the Swiss Forum of the best political makers.

Carstez said that the high protectionism and the fragmentation of trade was “especially with regard to” because it has been exacerbated by decades ago in the growth of the economy and productivity.

There is also evidence that the global economy has become less flexible in shocks, as both population aging, climate change, political geography and supply chain issues contribute to a more volatile environment.

A study in the report showed that the rise after inflation in inflation had a permanent impact on the public’s perception of price movements as well.

High public debt levels and their rise in the weak financial system in interest rates and reduce the ability of governments to spend their crises.

“This trend could not continue.”

Hyun Song Shin, the main economic advisor of BIS, reported the sharp decline in dollars. It has decreased by 10 % since the beginning of the year and the right track to be the largest decrease in H1 since the era of the free exchange rate began in the early 1970s.