The Fed’s Internal Struggle About Tariffs, Inflation, and Employment
Faults at the Fed: Disputes over tariffs, labor, and the forthcoming rate cut Recently, we examined how the ongoing debate regarding rate cuts has unsettled long-standing alliances within the Federal Reserve. Today, let’s dive into the sources of division and its implications for the market. The Fed’s unusual divisions Divisions within the Fed now extend […]
The Fed’s Unusual New Divisions
Why inflation hawks and doves no longer conform to party lines An unexpected ally in Monday’s Federal Reserve discussion emerged: Governor Lisa Cook, the official Donald Trump sought to remove this summer. Cook, appointed by Biden and currently suing Trump over his removal attempt, delivered remarks suggesting that risks to employment are more significant than […]
Bitcoin ETFs in the US Declined by $946 Million Following Fed’s Aggressive Stance
Simply put Last week, U.S. Bitcoin ETFs saw outflows of $946 million, with the iShares Bitcoin Trust losing $400 million. The newly launched Solana ETF gained $421 million in investments from a U.S.-based fund. Total withdrawals from digital asset funds reached $360 million, as investors reacted to cautious comments from U.S. central bank Chairman Jerome […]
USD/CAD stays steady above 1.4000 as the Fed’s policy outlook remains careful
USD/CAD Exchange Rate Stability The USD/CAD exchange rate is holding steady after a couple of days of gains, currently around 1.4010 during Asian trading hours on Monday. The pair has faced challenges as the Canadian dollar (CAD) gains strength, primarily driven by rising oil prices. It’s worth mentioning that Canada is the main crude oil […]
Implications of the Fed’s recent rate cut for your mortgage
The recent interest rate cut by the Federal Reserve is not going to immediately lower mortgage payments for homeowners. However, it may pave the way for more affordable borrowing, as mortgage rates are expected to drop to their lowest levels in over a year, according to Freddie Mac. On Wednesday, the Fed lowered its key […]
The Fed’s Inflation Predictions Are the Only Thing That Isn’t Stabilized
The Boston Fed’s Unusual Inflation Theory The Federal Reserve has consistently maintained that keeping inflation expectations steady is crucial for controlling actual inflation. This theory appears straightforward—essentially, if the public doesn’t anticipate soaring inflation, it’s less likely that inflation will rise significantly. However, a recent study from researchers at the Boston Fed suggests that these […]
The Fed’s Final Tarifflation Report Misinterprets Trump’s Tariffs Once More
Recent Study on Federal Reserve Tariffs Faces Criticism A recent analysis from the St. Louis Federal Reserve claims that tariffs imposed during President Trump’s term have raised consumer inflation by around 0.5 percentage points. This study, shared on the bank’s On the Economy blog, employs advanced econometric modeling to examine how tariffs influence consumer prices. […]
US Dollar Index (DXY) regains the 99.00 mark with attention on Fed’s Powell
The US dollar made a significant recovery after hitting a low around 98.65 during the Asian session, moving back into a bullish pattern and surpassing the 99.00 threshold to test Wednesday’s peak of 99.06 in early European trading. The U.S. dollar index, which tracks the dollar against six major currencies, is poised for its strongest […]
USD/JPY climbs to 153.00 as the dollar remains strong despite the Fed’s cautious stance
The Japanese yen (JPY) is facing significant selling pressure, experiencing a notable decline against the US dollar (USD) on Wednesday, with USD/JPY reaching 153.00 yen—its highest level since mid-February. As of now, the dollar/yen pair is trading around 152.84, reflecting an increase of over 3.5% this week, fueled by the yen’s continuing depreciation. This weaker […]
Former Federal and Treasury Officials Ask Supreme Court to Prevent Trump from Dismissing Fed’s Cook
Bipartisan Leaders Urge Supreme Court to Protect Fed Governor A diverse group of former Treasury secretaries, Federal Reserve chairs, and senior economic policymakers is calling on the Supreme Court to prevent President Donald Trump from dismissing federal governor Lisa Cook. They warn that this move could threaten both the independence of the central bank and […]