Global economic turmoil

There are limits to what central banks can achieve

The new forecast of the Organization for Economic Cooperation and Development shows that global growth in the current year will slip to its slowest since the financial crisis, largely because of the ongoing trade war. On Wednesday, the Federal Open Market Committee (FOMC) of the US Federal Reserve reduced policy interest rates by 25 basis points to support the US economy. This was after the European Central Bank pushed interest rate on its deposit facility further into negative territory and announced a plan to restart asset purchase without an end date. However, aside from the decision to reduce policy rates,