Economist Art Laffer Explains Why Tariffs Do Not Lead to Inflation
Economist Art Laffer discussed tariffs on Fox Business, asserting that import taxes won’t lead to inflation, as the negative effects on prices would be balanced by reductions in export prices. After President Trump announced mutual tariffs with various countries on April 2nd, he later called for a 90-day “suspension” of these tariffs. On the show […]
Inflation Pressure Eases Significantly in May, Supporting the Case for Fed Rate Reductions
Fed’s Inflation Gauge Indicates Easing Price Pressures The Federal Reserve’s preferred inflation measure revealed that fundamental price pressures lessened in May, suggesting a stronger case for interest rate cuts as price growth continues to decline. The Personal Consumption Expenditure (PCE) Price Index, released by the Commerce Department, increased by 0.1% that month, pushing annual inflation […]
Stocks Rise to All-Time Highs as Inflation Remains Low, Trump Advances Middle East Peace, and Tax Agreement Gathers Momentum
US Stocks Reach Record Highs Amid Positive Developments US stock markets surged to new all-time highs on Friday, driven by a combination of favorable events. Even with the ongoing tariffs, the conclusion of the Israel-Iran conflict, and indications that President Trump’s tax reforms are gaining traction in Congress, inflation appears to be cooling off. The […]
Dollar Index stays low as core PCE inflation increases, personal spending decreases
The dollar index declined following the increase in Core PCE, which is the inflation measure favored by the Fed, in May. The US dollar remains weak, with the DXY nearing Thursday’s low of 97.00. The Michigan Consumer Sentiment Index and its expectations offer insights into consumer perspectives on the current economic conditions. The US Dollar […]
Key Inflation Measure Shows No Indications of Price Increases from Tariffs
Federal Reserve Shows No Sign of Tax-Driven Price Increase The latest Federal Reserve data indicates that there was no significant tax-driven acceleration in May, suggesting that President Trump’s tariffs haven’t yet pushed consumer prices higher. This is particularly evident in product categories most vulnerable to import taxes. The core consumer spending (PCE) price index, which […]
Inflation measure favored by the Fed increased to 2.7% in May
Recently released government data revealed that the Federal Reserve’s favored measure of inflation has risen more than anticipated, with annual rates exceeding the central bank’s 2% target. The Bureau of Economic Analysis reported that the Personal Consumption Expenditure Price Index increased by 0.1% in the last month, elevating annual inflation to 2.3%. When taking out […]
Stock market today: Futures for Dow, S&P 500, and Nasdaq increase before important PCE inflation report
US Stock Market Updates: Record Highs and Trade Developments On Friday, US stocks were on the brink of reaching new record highs, driven by optimism around interest rate cuts and progress in US-China trade discussions. Futures for both the Dow Jones Industrial Average and the S&P 500 climbed by roughly 0.2%. Meanwhile, contracts for the […]
Asia-Pacific FX news summary: Tokyo inflation decreases but stays significantly above the target
China’s industrial profits saw a decline of 1.1% year-over-year for the period from January to May 2025, a notable drop from the previous increase of 1.4%. In Japan, retail sales increased by 2.2% year-over-year, falling short of the expected 2.7% gain. The unemployment rate in Japan stands at 2.5%, aligning perfectly with forecasts. Tokyo’s consumer […]
Bowman supports a July interest rate reduction due to low inflation and a fragile job market.
On Monday, Michelle Bowman, who serves as the Vice-Chair for Oversight at the Federal Reserve, indicated support for possible interest rate cuts as soon as next month. She noted that the inflation effects of President Donald Trump’s trade conflicts are less severe than originally anticipated and highlighted signs of weakness in the U.S. labor market. […]
Japanese Yen faces challenges in benefiting from rise linked to domestic inflation data
The Japanese Yen sees some interest as strong CPI data supports the notion of a BOJ rate hike. Ongoing trade uncertainties and geopolitical tensions enhance the Yen’s appeal as a safe-haven asset. The weakening Dollar adds to the easing of the USD/JPY pair from its recent highs. The Japanese Yen (JPY) is holding strong against […]