According to reports, discussions are underway in Beijing regarding the possibility of implementing a monetary stimulus ahead of schedule to mitigate the disruptive effects of President Donald Trump’s tariffs on China’s economy.
These developments follow Trump’s recent statement that he will not engage in a trade agreement with China until the trade deficit is addressed. Financial markets have faced a significant downturn, including a drop in bitcoin prices below $80K since Trump announced substantial reciprocal tariffs last Thursday, escalating trade tensions between the two nations.
Goldman Sachs has revised its forecast, now anticipating a total of 130 basis points of Federal Reserve rate cuts for 2025, an increase from the previously expected 105 basis points just days ago. Additionally, the Reserve Bank of Australia is projected to carry out four rate reductions.