Powell and Lagarde will lead the discussion next week, with the five central bank governors exploring monetary policy.

The central bank governors of the world's top five central banks are set to discuss monetary policy in a public forum next Tuesday, with the impact of Trump's presidency over the past five months on the global economy expected to be a focal point. The 2025 European Central Bank Central Banking Forum will take place in Sintra, Portugal from June 30 to July 2, where Federal Reserve Chairman Powell, ECB President Lagarde, and central bank colleagues from Japan, South Korea, and the UK will discuss how to deal with the chain reactions of White House decisions. From tariff-induced trade disputes to oil price fluctuations caused by conflicts in the Middle East, central banks around the world are grappling with how to handle these impacts. This high-level meeting at the ECB's annual conference will mark the first public discussion between Lagarde and Powell since the same event in 2024. Central banks generally adopt a wait-and-see approach At the midpoint of 2025, global monetary policy is nearly at a standstill, with central banks worldwide needing to carefully address the dual risks of inflation and growth posed by Trump's policies. Powell insisted on Tuesday that the Fed is not in a rush to change interest rates, while the Bank of England earlier this month kept borrowing costs unchanged. The ECB has just implemented a rate cut and is not currently planning further action, the Bank of Japan is expected to maintain its benchmark rate at its July 31 meeting, and the Bank of Korea is also maintaining a cautious stance. This collective stance of caution reflects central banks' cautious positions in the face of the current complex economic environment. The U.S. June jobs report will be released next Thursday, a day earlier than usual due to the Independence Day holiday. Economists predict employers added 113,000 jobs that month, the lowest in four months but still consistent with healthy labor demand. The unemployment rate is expected to increase slightly to 4.3%. For the Fed, which is awaiting more information on the potential inflationary impacts of tariffs, any significant deterioration in the labor market could put more pressure on officials to cut rates. This article is adapted from Wall Street see, Author: Bu Shu Qing, Editor: Li Cheng.