"This is uncharted territory for central bankers," Brahima Coulibaly, vice president of global economy and development at Brookings and a former Federal Reserve Board economist, tells Axios.
"They are less experienced and trained to manage policy and political uncertainty of this magnitude," Coulibaly adds. "Particularly in the United States, which emits the world's reserve currency and where policy has not historically been subject to significant unpredictability."
"The economic outlook is clouded by the possibility of new tariffs on Canadian exports to the United States," Tiff Macklem, the head of Canada's central bank, said last week after announcing a half-point interest rate cut to support its ailing economy.
"No one knows how this will play out," Macklem added. "This is a major new uncertainty."
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