Fed shake-up? Trump may announce Powell replacement early, WSJ reports
WASHINGTON, June 26 — US President Donald Trump has toyed with the idea of selecting and announcing Federal Reserve Chair Jerome Powell's replacement by September or October, the Wall Street Journal reported today citing people familiar with the matter. — Reuters
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Malay Mail
18 minutes ago
- Malay Mail
Trump compares US strike on Iran to Hiroshima, says it ‘ended a war'
THE HAGUE, June 26 — President Donald Trump Wednesday likened Washington's strike on Iran's nuclear facilities to the US dropping of atomic bombs on the Japanese cities of Hiroshima and Nagasaki to end World War II. 'Actually, if you look at Hiroshima, if you look at Nagasaki, you know that ended a war too,' Trump said as he wrapped up Nato's summit in The Hague. 'This ended a war in a different way, but it was so devastating.' Trump has ferociously defended his assertion that the US strikes using bunker-busting bombs 'obliterated' Iran's underground Fordo nuclear facility. US media has reported that a classified preliminary US intelligence report concluded that American strikes on Iran had set back Tehran's nuclear programme by just a few months — rather than destroying it. 'Was it bad? It was really bad,' Trump said. 'It was obliterated.' In the wake of the strikes on Iran, Trump announced that he had secured a ceasefire between Iran and Israel to halt their 12-day war. On August 6, 1945, the United States bombed Hiroshima, killing 140,000 in the explosion and by the end of the year from the uranium bomb's effects. Three days later, a US plane dropped a plutonium bomb on Nagasaki, leaving around 74,000 people dead by the end of the year. Japan surrendered on August 15. — AFP
The Sun
an hour ago
- The Sun
SST base expansion a prudent fiscal move, says RHB IB
KUALA LUMPUR: The expansion of Malaysia's Sales and Service Tax (SST) base is a carefully considered policy decision that balances fiscal responsibility with economic stability, according to RHB Investment Bank Bhd (RHB IB). The bank described the move as a measured approach to reinforce the country's fiscal position while minimising negative impacts on growth, inflation, and consumer spending. 'We maintain Malaysia's 2025 inflation forecast at 2.2 per cent, reflecting a gradual and orderly implementation of fiscal retargeting measures alongside moderate demand-side pressures,' RHB IB said in a research note. On trade performance, the bank noted early signs of weakening export momentum in ASEAN. Malaysia's May exports fell by 1.1 per cent year-on-year (y-o-y), missing market expectations of a 7.5 per cent increase and the bank's own five per cent projection. Similarly, Singapore's non-oil domestic exports unexpectedly declined by 3.5 per cent y-o-y. Globally, RHB IB observed a slight economic upturn in the second half of 2025, driven by easing trade tensions. Market sentiment has improved, with the RHB Risk Sentiment Index rising and global equity inflows recovering. 'If this trend holds, expectations of fewer Federal Reserve rate cuts, sustained risk appetite, and upward GDP revisions are reasonable,' the bank stated. However, risks remain as tariff suspensions are set to expire soon—July 8 for non-China trade and August 12 for China. Uncertainty over extensions could trigger market volatility. 'We maintain a tactical overweight in equities and market weight in fixed income through August but stand ready to shift to safe havens if trade risks resurface,' RHB IB added.
Malay Mail
an hour ago
- Malay Mail
Asian stocks stall, dollar slumps as Trump renews Powell attacks
Stocks take a breather after relief rally over ceasefire Investors eye trade deals ahead of tariff deadline Dollar slides after Trump attacks Powell again Oil inch higher to stabilise after a volatile month SINGAPORE, June 26 — Asian stocks stuttered today, while oil prices stabilised and the euro was perched at a 3-1/2-year high as investors weighed geopolitical, economic and fiscal uncertainties as they braced for US President Donald Trump's deadline on tariffs. Markets have been soothed by a ceasefire between Israel and Iran that appeared to be holding, reducing the risks of disruptions to the global oil trade and underpinning sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trading, as the rally in Wall Street took a breather overnight. Tokyo's Nikkei rose 0.9 per cent to a four-month high. The US dollar selling kicked up a notch after a media report said Trump has toyed with the idea of selecting and announcing Federal Reserve Chair Jerome Powell's replacement by September or October in a bid to undermine his position. That pushed the euro to its strongest level since November 2021. It last fetched US$1.6805 (RM7.10). The Swiss franc firmed to a decade-high while the Japanese yen strengthened 0.35 per cent to 144.70 per dollar. Trump has repeatedly criticised Powell for not cutting interest rates and has floated the idea of firing him or naming a successor soon, denting investor confidence in US assets and undermining the central bank's independence. 'I think it's a given that Trump's pick to succeed Powell, when it comes, will be one that sits at the highly dovish end of the spectrum and will support Trump's agenda of lowering interest rates,' said Tony Sycamore, market analyst at IG. 'The issue with this is it will resurface questions from earlier in the year around the Fed's independence, which, as we saw, undermines confidence in the Fed and the USD.' The dollar index, which measures the US currency against six rivals, wallowed at its lowest level since March 2022. The index has slid 10 per cent this year as investors, worried by Trump's tariffs and their impact on US growth, look for alternatives. Financial markets remain on edge over Trump's chaotic trade policies as the clock ticks down to his July 9 deadline for trade deals. Powell, who resumed two days of congressional testimony on Wednesday, said Trump's tariff plans may well just cause a one-time jump in prices, but the risk it could fuel more persistent inflation is large enough for the central bank to be careful in considering further rate cuts. Fed officials still expect to cut interest rates this year, but the timing is uncertain as officials wait on looming trade deadlines and for more certainty about the scope of the tariffs that will be imposed and the ways that rising import levies influence prices and economic growth. 'No one knows exactly how tariffs will impact inflation, which will keep central banks in conservative mode, particularly the Fed,' said Bank of America strategists, noting downside risks to global growth remain relevant, not only due to trade wars but also due to geopolitical developments. 'We are carefully monitoring fiscal policy across key countries that can affect global interest rates. Unsustainable fiscal dynamics can trigger an accident in bond markets,' they said in a note. In commodities, oil prices inched higher to continue recovering after a volatile month so far due to the conflict between longtime rivals Israel and Iran. Brent crude futures rose 0.2 per cent to US$67.82 a barrel, while US West Texas Intermediate crude (WTI) gained 0.28 per cent to US$65.1. — Reuters
