Reuters offers an intriguing perspective in a commentary by Mike Dolan, highlighting a significant shift in the global economic landscape. For years, central banks have been the dominant force in shaping markets and economies, but governments are now taking centre stage with bold—and often disruptive—policies. In just two months, the new US administration has unsettled the global order, triggering trade wars, straining long-standing alliances, and prompting a fundamental re-evaluation of fiscal strategies across Europe and beyond.As Germany and China respond with stimulus measures to counter the fallout, US businesses and households find themselves navigating an environment fraught with uncertainty. Government job cuts and Wall Street volatility are adding to concerns of a downturn. Even the Federal Reserve, caught in the turbulence, concedes its inability to predict near-term market shifts. Chair Jerome Powell’s recent remarks suggest the Fed is likely to stay on pause, leaving markets to adapt to this era of government-driven economic upheaval.
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