The U.S. faces risks of higher inflation and unemployment. Countries without tax hikes on imports are focused on the hit to growth.

LONDON] The Bank of England cut its main interest rate by 0.25 percentage points to 4.25 per cent on Thursday, despite an unexpected three-way split among policymakers as US President Donald Trump’s tariffs weigh on global economic growth.

While Fed Chair Jerome Powell suggested it’s in a “good position” to act decisively if necessary, some economists worry this approach could make the central bank slow to respond to a downturn. Consumer sentiment has plummeted amid trade policy uncertainty,