Global financial markets have shown remarkable resilience this week, with Wall Street building on record highs despite geopolitical tensions. The rally comes as investors shift their focus from the Iran conflict to corporate earnings reports.

However, a new source of uncertainty has emerged with President Donald Trump’s threat to fire Federal Reserve Chairman Jerome Powell if he doesn’t leave in May. This marks the latest escalation in the ongoing spat between the White House and the central bank.

Meanwhile, China’s economy has shown surprising strength, growing faster than expected despite the impact of the Iran war on Asian markets. The better-than-expected GDP data suggests that some economies are managing to weather the storm of global uncertainty.

In the UK, mortgage rates are showing signs of falling after reaching peaks during the Iran war crisis. Major lenders have begun making rate reductions as markets take heart from the potential truce.

Bank of England Governor Andrew Bailey has warned that the energy shock from the Iran war will push up prices, making the next interest rate decision “very, very difficult.” The central bank faces the challenging task of balancing inflation concerns with economic growth.