The San Francisco Fed’s Tariff Model Backfires
San Francisco Fed economists misrepresent Trump’s escalating tariff policy It seems that if you want to frame tariffs as a total failure, you might be onto something. A group at the San Francisco Federal Reserve Bank has taken a rather simplistic approach: they assume every trading partner reacts aggressively while the U.S. just stands by […]
EUR/USD declines due to positive US employment figures; Fed’s Daly takes a soft stance
The EUR/USD dips below 1.1700 as initial US unemployment claims exceed expectations. The Federal Reserve indicates some internal disagreement, with many members cautious about interest rate cuts. Trump’s tariffs on Brazil may trigger retaliation from President Lula. The EUR/USD pair is experiencing a downturn during North American trading sessions, as market participants analyze recent employment […]
The Fed’s Views on Inflation from Tariffs
The Fed is Trapped in Group Ideas About Tariffs If you’ve been curious about how Federal Reserve officials perceive Donald Trump’s tariff strategies, the latest minutes from the Federal Open Market Committee (FOMC) make it quite clear. They all consider tariffs to be inflationary. This consensus is not contested within the Eccles building. Every participant […]
EUR/USD falls as strong US employment figures support the Fed’s tight approach
US NFP exceeds expectations, pushing EUR/USD below 1.1750. US economy shows stronger job growth in June, while the Fed takes a wait-and-see approach. ECB signals reconsideration of its interest rate cut decision from June. The euro weakened against the US dollar on Thursday following the announcement of employment figures for June in the US. This […]
White House indicates that choosing a successor for Fed’s Powell is not urgent after Trump suggests ‘3 or 4’ candidates.
White House Addresses Succession Speculation for Federal Reserve Chairman On Thursday, the White House clarified that President Trump is not on the verge of announcing a successor for Fed Chairman Jerome Powell. A White House spokesperson mentioned to the Post that while the president has the freedom to change his mind, any decision regarding nominations […]
Powell Needs to Rely on the Data Instead of the Boston Fed’s Inaccurate Tariff Study
Inflation by Assumption: Fed Tariff Shortcuts Recently, Federal Reserve Chair Jerome Powell stirred some conversation with his remark regarding new tariffs potentially leading to price increases. He stated that those tariffs would inevitably be passed onto consumers, suggesting a significant jump in prices due to them. However, this viewpoint seems to reflect Powell’s personal circle […]
Powell supports the Fed’s cautious strategy in response to Trump’s remarks and pressure from the GOP
Federal Reserve Chairman Jerome Powell addressed concerns from Senate Republicans and criticism from President Trump regarding the central bank’s hesitance to lower interest rates. During his testimony before the Senate Banking Committee, Powell responded to pressure from GOP senators and allegations of political bias within the Fed. He acknowledged the potential effects of Trump’s tariffs […]
USD/CHF approaches multi-year lows as the Fed’s cautious stance impacts the US Dollar
The Swiss franc is set to gain against the US dollar as geopolitical tensions subside following a fragile ceasefire between Iran and Israel. USD/CHF is trading above its lowest point since 2011, impacting safe haven flows while the US dollar remains weak. Federal Reserve Chairman Powell indicates that several paths are possible for US rates, […]
US Dollar Index falls close to 98.00 following Israel-Iran truce and Fed’s soft remarks
The US dollar index has dropped to around 98.00, reflecting a decline in safe haven demand due to easing geopolitical tensions. The president of the US urged both Israel and Iran to adhere to the ceasefire agreement. Fed official Bowman indicates a willingness to consider interest rate cuts in July. The US dollar (USD) has […]
GBP/USD rises to 1.3500 as Fed’s Bowman supports a July cut, tensions in Iran escalate
Bowman suggests that GBP/USD is likely to rise from a low of 1.3369, citing the appropriateness of the interest rate cuts in July. Recent tensions involving the US and Iranian nuclear sites have led to market fluctuations. Meanwhile, the Iranian parliament has voted to block the Strait of Hormuz. The UK’s Flash Services PMI is […]