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Another Jolt of Uncertainty for a Global Economy Mired in It

Another Jolt of Uncertainty for a Global Economy Mired in It

The New York Times
Wednesday, November 6, 2024 10:24 PM GMT

The U.S. presidential election result has ensured a sharp turn in economic policy expected to upend global commerce and diverge from decades of American norms.

The U.S. presidential election is over. What remains is a disorienting miasma of fresh economic uncertainty.

Despite reams of campaign proposals, just how President-elect Donald J. Trump’s administration will handle policy decisions that are crucial to the global economy’s path — on trade, technology, climate, industrial policy and more — is still unclear.

Meanwhile, pre-election sources of instability keep spinning. War rumbles on in Ukraine. Escalating conflict in the Middle East could reignite a rise in food and energy prices. China, a vital engine of global growth, is trying to resuscitate its flattened economy. Many poor and middle-income countries face an unscalable wall of debt.

Increasing bouts of extreme weather continue to destroy crops, wreck cities and swell the flow of migrants from economically devastated regions. And advances in artificial intelligence are poised to eliminate, create and reconfigure tens of millions of jobs.

Then there is the hangover from the pandemic. Philip N. Jefferson, the vice chair of the Federal Reserve, has said policymakers are still trying to understand the economic aftereffects of this “once-in-a-century disturbance of worldwide consequence.”

Inflation, in particular, has become harder to predict in the pandemic’s aftermath as political and military tensions have risen, he noted.

Read full story on The New York Times
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