Global Patience Amid Crosscurrents: Policymakers Steady as Growth Moderates

Prepared by Northern Trust’s Global Economic Research team, this report assesses how leading economies are navigating slowing growth, persistent inflation, and shifting monetary policies.

• The US faces mixed signals: moderating inflation and a soft labor market support further Fed cuts, while policy stability returns after tariff easing.

• Europe and the UK maintain cautious postures as inflation cools but fiscal pressures mount; Japan eyes rate hikes amid persistent price growth.

• China’s steady output masks weak consumption, while Australia balances disinflation with labor market strain.

Will patience pay off—or delay needed stimulus? Explore the full outlook for insight into 2026’s global trajectory.