logo
Trump says he's not planning to fire Fed's Powell

Trump says he's not planning to fire Fed's Powell

Business Times16-07-2025
[WASHINGTON] US President Donald Trump said on Wednesday (Jul 16) he is not planning to fire Federal Reserve chair Jerome Powell, after a Bloomberg report that the president is likely to do so soon sparked a drop in stocks and the US dollar, and a rise in Treasury yields.
Trump is open to the idea of firing Powell, a source told Reuters on Wednesday before Trump said he wouldn't, even as he unleashed a new barrage of criticism against the Fed chair for not cutting interest rates.
Trump polled some Republican lawmakers on firing Powell and received a positive response, the source told Reuters.
In response to a question about whether the White House has given any indication that the president intends to try to fire Powell, a Fed official pointed to Powell's public statements that he intends to serve out his term. REUTERS
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Asian credit gauges head for biggest two-day blowout since April
Asian credit gauges head for biggest two-day blowout since April

Business Times

time39 minutes ago

  • Business Times

Asian credit gauges head for biggest two-day blowout since April

[JAKARTA] Credit spreads on Asian investment-grade US dollar bonds widened on Monday (Aug 4), putting them on course for the biggest two-day blowout since early April, following worse-than-expected US jobs data. Yield premiums on Asian notes were at least three basis points wider on the day after expanding six basis points on Friday, based on information from traders and a Bloomberg index. The expansion came after spreads shrank to a record low before Friday's payrolls numbers. The gyrations in Asian credit markets are part of a slump in global risk sentiment following the disappointing jobs data. Treasuries jumped in US trading as markets added to bets on Federal Reserve interest-rate cuts this year. Any large move in US Treasury yields, over which most corporate US dollar bonds are priced, typically causes spreads to react around the world as traders reprice risk. Spreads on higher-rated corporate bonds had shrunk to the narrowest since July 2007 before Friday's nonfarm payrolls numbers as markets cheered a string of trade deals between the US and major trading partners, including the European Union and Japan. In the event, that tightening may have just made them more vulnerable to any negative news. 'US spreads remain pretty tight,' said Pauline Chrystal, a fund manager at Kapstream Capital in Sydney. 'We continue to see the risk-reward skewed to the downside.' BLOOMBERG

Asia: Markets fluctuate as traders weigh tariffs, US jobs
Asia: Markets fluctuate as traders weigh tariffs, US jobs

Business Times

time2 hours ago

  • Business Times

Asia: Markets fluctuate as traders weigh tariffs, US jobs

[HONG KONG] Asian markets flitted between gains and losses on Monday as investors continued to digest last week's tariff blitz by Donald Trump and a US jobs report that fanned fears about the world's top economy. News on Friday that dozens of countries would be hit with levies ranging from 10 to 41 per cent sent shivers through exchanges amid concern about the impact on global trade. With the date of implementation pushed back to Thursday, focus will be on talks between Washington and other capitals on paring some of the tolls back. The pain was compounded later by figures showing the US economy created just 73,000 jobs in July - against 104,000 forecast - while unemployment rose to 4.2 per cent from 4.1 percent. Job gains from June and May were also revised down by nearly 260,000. The figures stoked concerns that Trump's tariffs are beginning to bite, with inflation also seen pushing back towards three per cent. The reading also saw the president fire the commissioner of labour statistics, accusing her of manipulating employment data for political reasons. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Bets on the Federal Reserve cutting interest rates at its September meeting shot up following the jobs numbers, with some analysts predicting it will go for a 50-basis-point reduction, rather than the regular 25 points. Yields on US Treasury bonds fell sharply as investors priced in the cuts. Investors will now be keenly awaiting every utterance from Fed boss Jerome Powell leading up to the next policy meeting, not least because of the pressure Trump has put on him to lower rates. Observers said news that governor Adriani Kugler will step down from the bank six months early will give the president a chance to increase his influence on decision-making. 'Fed credibility, and the veracity of the statistics on which they base their policy decisions, are both now under the spotlight,' said National Australia Bank's Ray Attrill. 'Fed officials, such as New York President John Williams speaking after the data, profess to be open minded about the September Fed meeting, but Mr Market has already decided they are cutting - ending Friday 88 per cent priced for a 25-basis-points rate reduction.' Still, Asian investors tried to get back on the horse after Friday's selloff, with Hong Kong, Shanghai, Singapore and Seoul up, while Tokyo, Sydney, Wellington, Taipei, Manila and Jakarta were all down. The performance was better than New York, where the S&P 500 and Dow each lost more than one per cent and the Nasdaq more than two per cent - with some also questioning whether a recent rally to multiple records has gone too far. The dollar edged up but held most of its losses against its peers after tanking on the jobs report. And oil extended Friday's losses of almost three per cent, which came after Opec and other key producers agreed another output hike, fanning oversupply fears owing to the effects of Trump's tariffs and signs of a weakening economy. AFP

Japan ready to compile extra budget to cushion US tariff blow, PM Ishiba says
Japan ready to compile extra budget to cushion US tariff blow, PM Ishiba says

Straits Times

time3 hours ago

  • Straits Times

Japan ready to compile extra budget to cushion US tariff blow, PM Ishiba says

Sign up now: Get ST's newsletters delivered to your inbox Japan's Prime Minister Shigeru Ishiba, wearing a formal attire, walks toward the upper house hall to attend an opening ceremony of the parliamentary session in Tokyo, Japan August 1, 2025. REUTERS/Issei Kato/File Photo TOKYO - Japanese Prime Minister Shigeru Ishiba said on Monday the government is ready to compile an extra budget to cushion the economic blow from U.S. tariffs, a move that would add strain to the country's already worsening finances. After suffering a stinging defeat in last month's upper house election, Ishiba's minority coalition is under pressure to heed opposition parties' demand to boost spending and cut Japan's sales tax. "We will compile one if necessary, taking into account discussions with other parties," Ishiba told parliament when asked by an opposition lawmaker whether the government would compile an extra budget that includes tax cuts. If the government were to compile a stimulus package, an extra budget to fund the spending would be submitted to an extraordinary parliament session likely to be convened in September. Japan's trade deal struck with President Donald Trump last month lowers U.S. tariffs for imports of goods including its mainstay automobiles, easing the pain for the export-reliant economy. But there is no clarity on when U.S. tariffs for automobiles and auto parts will be cut to 15% from the current 25%, clouding the outlook for Japan's fragile recovery. Compiling an extra budget has become a regular practice in Japan as politicians call for increasing spending to support the economy, keeping its fiscal policy loose even as other countries rolled back crisis-mode spending after the COVID-19 pandemic. Top stories Swipe. Select. Stay informed. Singapore Live: Ong Beng Seng pleads guilty in case involving ex-transport minister Singapore Ong Beng Seng pleads guilty to abetting obstruction of justice in case linked to ex-minister Iswaran Singapore The past and future of Choa Bungalow, a 'last reminder' of Marine Parade's former shoreline Multimedia How Singapore is rethinking nature in the city Business Buyers take up over 900 condo units at three new launches in Singapore over the weekend Business Are Gen Z-ers in Singapore worried about generative AI coming for their jobs? World Trump is winning his trade war, but Americans will pay the price Singapore No plans to fully liberalise cross-border ride-hailing services between Singapore and Johor: LTA Ishiba has not commented on the possible size of an extra budget, but some analysts expect it could reach around 10 trillion yen ($67.68 billion), which would require additional debt issuance. The extra budget would come on top of a record 115.5 trillion yen budget for the current fiscal year. Of the total, 24.5% is being spent on financing debt. Such deficit funding costs will likely rise further as the Bank of Japan eyes more interest rate hikes, analysts say. With rising food costs hurting consumption, opposition parties have called for slashing or eliminating Japan's sales tax rate, which is set at 10% except for 8% for food. Ishiba, who is regarded as a fiscal hawk, has been cautious about cutting the sales tax, which funds social welfare costs for a rapidly ageing population. A flurry of big spending packages and ballooning social welfare costs for a rapidly ageing population have left Japan with a debt pile 250% the size of its economy - the highest among major economies. REUTERS

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store