Daily Summary
The IMF warned that instability in the banking sector might further slow global growth amid inflation and rising interest rates, with the world's economic output expected to drop to 2.8% in 2025. Meanwhile, business optimism is surging in the US ahead of Trump's presidency, as companies expect pro-business policies, though some economists caution that tax cuts, tariffs, and tighter immigration measures could lead to higher inflation.
Business Optimism Soars Ahead of Trump Takeover of Washington
U.S. businesses are buoyant ahead of Trump’s takeover, anticipating pro-growth policies such as tax cuts and deregulation, though some caution that increased tariffs and strict immigration rules could spark inflation.
IMF Warns of Banking Sector Trouble for Global Economy
The IMF cautioned that banking sector volatility may further dampen global economic growth, with reduced lending potentially impacting GDP.