Trump approaches a key trade week while anticipating the Fed’s choice on interest rate reductions.
Trump’s Agenda: Trade Deal and Fed Decisions This week, President Trump’s schedule includes a brief visit to Scotland, discussions on a new trade agreement, and the Federal Reserve’s rate decisions, all of which are likely to dominate his agenda. On Sunday, Trump made headlines by announcing a trade deal involving the European Union, alongside EU […]
Trump returns from Scotland as he prepares for an important trade week and awaits the Fed’s decision on reducing interest rates.
Trump’s Agenda: Trade Deals and Federal Reserve Decisions This week, President Donald Trump’s schedule is packed with significant items, including a brief visit to Scotland, discussions around the World Trade Agreement, and meetings related to the Federal Reserve’s interest rate decisions. On Sunday, Trump revealed his new trade agreement with the European Union during a […]
The Fed’s Improvised Approach to Inflation from Tariffs
When Tariff Inflation Was Lost, the Fed Invented a New Theory to Explain It The most recent minutes from the Federal Reserve reveal more than just insights into financial policy; they provide a glimpse into the thinking of an institution grappling with its assertion that tariffs lead to inflation. In June, Fed officials and staff […]
Bessent supports the Fed’s independence in setting interest rates despite Trump’s criticism
Treasury Secretary Defends Fed’s Independence Amidst Controversy Treasury Secretary Scott Bescent has stepped into the fray, defending the Federal Reserve’s autonomy following recent heated exchanges involving President Trump and the Wall Street Journal. On social media, Bescent emphasized, “Fed independence is the continuous foundation of US economic growth and stability.” He referred to the implementation […]
The Fed’s inability to guide could lead to a financial crisis in America.
Speculation Surrounding Fed Chairman Powell In recent weeks, chatter about the future of Federal Reserve Chairman Jerome Powell has intensified. Some individuals express a desire for President Trump to dismiss him, while others speculate that Powell might choose to resign. Regardless of the outcome, this discussion points to a deeper issue at hand: a noticeable […]
EUR/USD rises as Trump challenges Fed’s independence, weak PPI impacts USD
The euro is expected to recover from its three-week low, likely rising above 1.1600. Trump suggests he might dismiss Federal Reserve Chairman Powell, later criticizing him for delaying fee adjustments. The US Producer Price Index (PPI) fell short of projections, reinforcing a dovish sentiment, yet this also supports the euro’s rise. The EUR/USD pair maintained […]
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 […]