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 […]
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 […]