Teh independence of a central bank is widely regarded as essential for a well-functioning economy. These institutions manage the economy by adjusting benchmark interest rates, which influence bank loans, mortgages, and other forms of debt.

Lower interest rates generally appeal to corporations and consumers, reducing borrowing costs.This encourages businesses to expand and invest, which in turn boosts income and spending. Though, this can lead to an overheated economy and rising prices.

Former U.S. President Donald Trump's repeated calls for the Federal Reserve to cut interest rates have sparked debate. While lower rates might please businesses and individuals,they risk fueling inflation. Coupled with tariffs, which essentially act as taxes on imports and drive up prices, this could exacerbate inflationary pressures.

Central banks typically operate independently from government influence to avoid short-sighted decisions. An administration focused on immediate popularity might lower rates despite high inflation, perhaps leading to long-term economic instability.

The timing of trump's comments coincided with a break in U.S. and European markets for Good Friday, offering a temporary respite from potential market reactions.

Key Developments

• Trump's Renewed Call for Rate Cuts:

  Former President Donald Trump reiterated his call for lower interest rates,stating that if we had a Fed Chairman that understood what he was doing,interest rates would be coming down,too. The White House reportedly considered options to remove the Fed chair. This is not the first instance of Trump criticizing the fed's monetary policy.

• Growing Disapproval of Trump's Economic Policies:

  A recent CNBC survey indicated that 55% of respondents disapproved of Trump's handling of the economy, marking the first time his economic approval rating has been net negative in a CNBC poll during his presidency. Pessimism about the economy and stock market is also on the rise.

• Potential Summer Economic Slowdown:

  Chicago Fed President Austan Goolsbee suggested that the U.S. economy might be experiencing an elevated level of activity now due to businesses stocking up before tariffs take effect. He cautioned that activity might look artificially high in the initial, and then by the summer, might fall off — because people have bought it all. Sectors like the auto industry and electric components could be notably affected.

• Executive Order to Overhaul State Department:

  The Trump administration is considering sweeping changes to the U.S. state Department via an executive order. The proposed changes could include closing embassies in Southern Africa and eliminating bureaus focused on democracy, human rights, and international organizations.

• U.S. Imposes Fees on Chinese-Built Ships:

  The U.S. announced fees on Chinese-built vessels docking at U.S. ports, citing unreasonable trade practices. The fees are based on the net tonnage of the vessels and will be charged per voyage.

• Ukraine and U.S.Explore Mineral Deal:

  Ukraine and the U.S. signed a memorandum of intent to jointly develop Ukraine's natural resources. However, U.S.Secretary of State Marco Rubio indicated that the U.S. might walk away from trying to broker a Russia-Ukraine peace deal if progress is not made quickly.

• Earnings Reports Take Center Stage:

  Market focus may shift from tariffs to first-quarter earnings reports, with Tesla and Alphabet scheduled to announce their results.

"Made in China 2025": A Progress Report

The "Made in China 2025" plan, launched in 2015, aimed to boost Chinese businesses. While initially met with international criticism and later downplayed, China has since intensified its focus on domestic tech development, especially given U.S. restrictions.

According to a report by the European Chamber of Commerce in China, China has surpassed its goals in achieving domestic dominance in the auto industry. However, it has not yet met its targets in sectors like aerospace, high-end robots, and manufacturing value-added growth.The report stated that, Out of ten strategic sectors identified in the report, China only attained technological dominance in shipbuilding, high-speed rail and electric cars.