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Showing posts with the label Unveiling the Central Bank: Functions and Tools Shaping Economic Stability

U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook

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📉 U.S. Economic Growth Slows Amid Tariff Pressures: A 2025 Outlook As 2025 unfolds, the U.S. economy is showing signs of strain amid a global slowdown and heightened trade barriers. Here's a detailed look at the latest forecasts and implications based on insights from the OECD, Federal Reserve, and key market indicators . 📊 1. U.S. Growth Forecast Downgraded by OECD The Organisation for Economic Co-operation and Development (OECD) has revised the U.S. GDP growth forecast for 2025 to 1.6% , down from 2.8% in 2024 . The forecast for 2026 remains muted at 1.5% , reflecting persistent uncertainty driven by: Elevated trade barriers Reduced consumer spending power Sluggish business investment 💸 2. Tariffs Fueling Inflation & Trade Costs The average U.S. tariff rate has climbed to 15.4% , the highest level since 1938 . These tariffs have raised import costs, which are now being passed on to consumers: Projected consumer price inflation is expected to rise to...
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Unveiling the Central Bank: Functions and Tools Shaping Economic Stability

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  Central banks are the linchpins of monetary policy and guardians of financial stability in modern economies. Their multifaceted roles encompass a wide array of functions and tools aimed at steering the economy towards sustainable growth and stability. In this post, we'll delve into the pivotal role of central banks, exploring their functions and the tools they employ to shape economic outcomes. The Functions of Central Banks Central banks perform several critical functions that are instrumental in maintaining economic stability: Monetary Policy Formulation: Perhaps the most prominent function of central banks is the formulation and implementation of monetary policy. They adjust interest rates, control the money supply, and use various policy tools to achieve macroeconomic objectives such as price stability, full employment, and sustainable economic growth. Banking Supervision and Regulation: Central banks oversee the banking sector to ensure its stability and soundness. They re...
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