Australian Treasurer Warns of 'Seismic Shock' from US Policy

In a recent statement, Australian Finance Minister Jim Chalmers warned that the US administration's new policies would cause a "seismic shock" to the global economy. This warning was made before Mr. Jim Chalmers announced the national budget on March 25.

Australia has been successful in reducing inflation, increasing real wages and improving people's incomes. (Source: australia.com)

Mr Chalmers is expected to introduce a new cost of living support package, including a six-month extension of the electricity bill subsidy scheme, at a cost of AU$1.8 billion (US$1.1 billion).

Minister Chalmers said he expected a slight increase in revenue in the upcoming fiscal plan. However, global economic uncertainty, stemming from new US policies, has cast a shadow over the entire budget plan.

Speaking to Bloomberg in Canberra, Mr Chalmers warned of a world of uncertainty, stressing that the budget was designed to address global challenges, from conflicts in the Middle East and Europe to political instability and division around the world, while also strengthening the country’s resilience to external shocks.

As Prime Minister Anthony Albanese's government faces a range of challenges, from the housing crisis to the Reserve Bank of Australia's (RBA, the central bank) efforts to rein in inflation, Minister Chalmers delivered a rather optimistic message.

He said the Australian economy was making positive progress (despite global pressures) in the context of the RBA cutting interest rates for the first time in four years in February 2025.

Mr. Chalmers emphasized that Australia has succeeded in reducing inflation, increasing real wages and improving people's incomes. Unemployment is at a very low level compared to history. Australia has also reduced public debt, interest rates are trending down, and economic growth is now recovering firmly with the lead of the private sector.

Although the Australian government is pursuing similar pro-industry and green energy policies as the administration of former US President Joe Biden, Minister Chalmers said there would be no new announcements related to these areas in the upcoming budget.

Source: https://baoquocte.vn/bo-truong-tai-chinh-australia-canh-bao-cu-soc-dia-chan-tu-chinh-sach-cua-my-308396.html