US Federal Reserve Chair Jerome Powell highlighted escalating concerns over the US economic outlook during a press conference Wednesday, citing heightened uncertainty from domestic policy disruptions and recent trade measures. The Fed's decision to maintain interest rates followed its March meeting, but Powell's remarks drew attention to growing recession risks. “Domestic turbulence and evolving trade policies have amplified challenges,” he stated, referencing shifts analysts link to former President Donald Trump's renewed tariff proposals.
Market watchers across Asia are assessing potential spillover effects. “A US slowdown could dent export demand for electronics and machinery from economies like South Korea and Japan,” said Mei Lin, a Singapore-based economist. Meanwhile, Southeast Asian markets face dual pressures from fluctuating capital flows and supply chain adjustments.
Analysts suggest investors may pivot toward emerging Asian bonds as safe-haven alternatives if US volatility persists. However, weakened consumer spending in Western markets could impact regional manufacturing hubs. The Fed's next policy moves, including potential rate cuts later this year, are likely to shape currency dynamics and trade patterns critical to Asia's growth.
