S&P Global has modestly raised its 2025–26 global GDP growth forecasts amid easing trade tensions and more favorable financial conditions. However, momentum slowed in Q2, and growth is projected to remain below long-term potential
📉 Bank of England Warns of Post-Tariff Trade Disruption
BOE Governor Andrew Bailey cautions that Trump-era tariffs have “blown up” the post‑war trading system. The OECD has downgraded its 2025–26 global growth outlook to 2.9%, citing tariff uncertainty and fragile consumer demand
🤝 U.S.–China Trade Deal Sparks Market Optimism
Following talks in London, Washington and Beijing agreed to a tentative trade framework. The deal, including reduced tariffs and expanded access to rare-earth minerals, helped boost global markets and eased investor sentiment
📊 Fed Divided on Inflation vs. Rate Cuts
With mixed global growth data and persistent inflation, Federal Reserve policymakers are split between maintaining current interest rates or pivoting to cuts later in the year. Markets expect rate cuts but uncertainty remains high .
