Latest news with #AdrianaKugler
Yahoo
3 days ago
- Business
- Yahoo
Fed's Kugler: Must Examine If Role of US Assets Is Changing
Federal Reserve Governor Adriana Kugler stressed the importance of examining how potential changes in the desirability of American financial assets could affect financial stability "both domestically and internationally." Kugler spoke Thursday at the 5th Annual Federal Reserve Board Macro-Finance Workshop.
Yahoo
4 days ago
- Business
- Yahoo
Fed Governor Kugler monitoring markets amid trade shifts, dollar concerns
-- Federal Reserve Governor Adriana Kugler expressed concern on Thursday about the impact of changing trade policies and a potential decrease in investor interest in U.S. dollar assets. She emphasized the importance of understanding how a company's financial health intersects with its international trade exposure, particularly in the current uncertain global economic landscape. Kugler did not provide any future predictions about monetary policy or the economic outlook during her speech at a central bank conference. Her comments come in the midst of an ongoing trade war initiated by President Donald Trump, which has unsettled financial markets and increased economic outlook risks. The president's rapidly changing attempts to significantly raise import taxes to encourage a resurgence of domestic manufacturing suffered a significant setback on Monday. A court decision invalidated a large portion of the current tariff schedule. Many Fed officials and private sector economists believe that the tariffs will likely cause a temporary increase in inflation, while simultaneously increasing unemployment and slowing growth. The president's trade policy has also caused significant volatility in global financial markets and seems to be driving a shift away from dollar-denominated assets. This could have significant implications for the future of the American economy. Kugler highlighted her monitoring of the financial stability implications of a potential decrease in the attractiveness of U.S. financial assets during flight-to-safety events. Recent market activity has shown a reduced interest in U.S. assets as safe havens during periods of stress. Kugler stressed the importance of examining how potential changes in the role of U.S. financial assets as a safe haven might affect financial stability both domestically and internationally. Her comments followed the release of the minutes from the Federal Open Market Committee meeting on May 6-7. During the meeting, some officials expressed concern about how investors approached U.S. assets during the market difficulties in April, as government bond yields increased while the dollar, stocks, and other assets lost value. The minutes noted that a lasting change in these correlations or a decrease in the perceived safe-haven status of U.S. assets could have long-term implications for the economy. Related articles Fed Governor Kugler monitoring markets amid trade shifts, dollar concerns Capital Economics still sees global growth below 3% this year Powell meets Trump, says monetary policy remains data-dependent Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Reuters
4 days ago
- Business
- Reuters
Fed's Kugler says monitoring markets amid big policy shifts
May 29 (Reuters) - Federal Reserve Governor Adriana Kugler said on Thursday she's closely watching markets amid substantial shifts in trade policy and possible diminished investor desire to hold U.S. dollar assets. 'I have been paying attention to the possible interaction between the financial vulnerabilities of firms and their exposure to trade,' Kugler said. 'As global economic tensions rise and supply chains evolve, understanding how a company's financial health intersects with its international trade exposure becomes increasingly crucial' amid what the Fed official called 'an uncertain global economic landscape.' Kugler, whose comments came from the text of a speech prepared for delivery before a conference at the central bank, did not make any forward-looking comments about monetary policy or the economic outlook. The central banker spoke as President Donald Trump's trade war continues to keep financial markets unsettled, while at the same time boosting risks around the economic outlook. The president has sought in a rapidly shifting fashion to dramatically increase import taxes to spur a return to the U.S. of manufacturing, although that agenda was dealt a major setback by a court decision Monday invalidating much of the current slate of tariffs. Fed officials and many private sector economists believe the tariffs will likely increase inflation at least for a time, while pushing up unemployment and depressing growth. The president's trade policy has also introduced heavy volatility into global financial markets and appears to be fueling a move away from dollar-denominated assets, which could have big implications for the future of the American economy. 'I have been monitoring the financial stability implications of the potential lower desirability of U.S. financial assets in flight-to-safety events,' Kugler said, as recent market moves have shown less safe-haven interest in U.S. assets during periods of stress. 'As the global economic landscape shifts, it is crucial to examine how possible changes in the role of U.S. financial assets as a safe haven might affect financial stability both domestically and internationally,' Kugler said. Kugler's remarks followed the release on Wednesday of meeting minutes from the central bank's May 6-7 rate-setting Federal Open Market Committee meeting. Then, some officials noted concern about how investors approached U.S. assets during April's market woes, as government bond yields rose while the dollar lost ground along with stocks and other assets. 'These participants noted that a durable shift in such correlations or a diminution of the perceived safe-haven status of U.S. assets could have long-lasting implications for the economy,' the Fed meeting minutes said.
Business Recorder
13-05-2025
- Business
- Business Recorder
Gold price per tola jumps Rs3,700 in Pakistan
Gold prices in Pakistan increased on Tuesday in line with their rise in the international market. In the local market, gold price per tola reached Rs344,200 after it gained Rs3,700 during the day. As per the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA),10-gram gold was sold at Rs295,096, after it registered an increase of Rs3,173. On Monday, gold price per tola reached Rs340,500 after it lost Rs10,400. Moreover, the international rate of gold also increased on Tuesday. As per APGJSA, the rate was at $3,258 per ounce (with a premium of $20), an increase of $37 during the day. Furthermore, silver price per tola increased Rs71 to reach Rs2,985. Internationally, gold recovered on Tuesday on bargain-hunting after prices dropped to a more than one-week low in the previous session as a temporary US-China truce in reciprocal tariffs lifted appetite for riskier assets and dented bullion's safe-haven appeal. Spot gold rose 0.5% to $3,250.50 an ounce, as of 0458 GMT. Bullion recorded a 2.7% decline in the previous session. US gold futures were up 0.9% to $3,255.30. After two days of negotiations in Geneva, US and China announced tariff reductions for the next three months, with US tariffs on Chinese imports dropping from 145% to 30% and Chinese duties on US imports falling to 10% from 125%, leading to a surge in global shares. The US and China had imposed tit-for-tat tariffs on each other last month, triggering a trade war. 'There is some value-buying happening on gold at current levels which is helping to prop up the price, despite the generally better outlook for global growth with the US and China on better terms,' said KCM Trade Chief Market Analyst Tim Waterer. 'The consolidation move in the dollar has allowed the gold price to make a mild push higher.' Federal Reserve Governor Adriana Kugler said the pause on import levies reduces chances that the US central bank will need to lower interest rates in response to an economic slowdown.
Indian Express
13-05-2025
- Business
- Indian Express
Tariff Tracker, May 13: India retaliates against US metals tariffs, Trump visits the Gulf
India informed the World Trade Organization (WTO) on Monday (May 12) of its proposed retaliatory tariffs against the US, in response to the duties on steel and aluminium. The US President landed in Riyadh on Tuesday morning, kicking off a three-nation tour that will also see him visiting the UAE and Qatar. The trip is expected to highlight his renewed global outreach policy, seeking exceptional investments in the US for better bilateral relations. In a document submitted to the WTO, India identified the American metals tariffs, effective from March 12, as 'safeguard measures'. The WTO's Agreement on Safeguards (AoS) identifies safeguards as protectionism that a member country may invoke if it determines that certain product imports are significantly large and may 'cause or threaten to cause serious injury' to the corresponding domestic competitor. The same agreement lays out terms for concessions and obligations to be complied with, as well as reasons to suspend the same. India has thus invoked its right to suspend 'concessions and other obligations' described in Article 8.2 of the AoS. The document says that the tariffs affect $7.6 billion worth of Indian exports into the US, on which $1.91 billion would be collected as duties. Therefore, India's 'proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in the United States,' according to the document. It is currently unclear what US products would be targeted. This move is not unprecedented for India. In 2019, Bloomberg reported that India had imposed retaliatory customs duties on 28 American goods, in response to Trump's 2019 decision to end trade concessions on $5.7 billion of goods shipped by India to the US. US Treasury figures released Monday revealed that Trump's tariffs generated an additional $15 billion in government revenue in April. Incidentally, April was also the month with the largest increases in US tariffs: the 10% duty on all American imports effective from April 5, and the escalating Chinese tariffs amounting to 145% by April 9. The US and China announced a 90-day pause on tariffs over the weekend, effectively reducing mutual tariffs by 115% each. Further, the US President Monday announced an executive order slashing the prices of pharmaceutical drugs in what he described as the 'most-favored-nation' pricing model. Despite this, economic growth in the US would likely be slow and prices high, according to Federal Reserve Governor Adriana Kugler. 'Trade policies are evolving and are likely to continue shifting,' she said Monday. 'Still, they appear likely to generate significant economic effects even if tariffs stay close to the currently announced levels, and the uncertainty associated with these tariffs has already generated effects on the economy through frontloading, sentiment and expectations.' This follows the Fed's decision to maintain the status quo last week, opting not to trigger inflationary risks by slashing interest rates. Investors will also be keenly watching the US inflation report after its release on Tuesday, with the data released by the Bureau of Labor Statistics expected to reflect the first signs of the impact of Trump's tariffs. A Bloomberg survey of economists indicated a rise of 0.3% in the Consumer Price Index (CPI) from March, after falling the previous month. However, the impact would be contained, given that most imports reached the US before the tariffs became effective. Trump's visit to the Middle East, beginning Tuesday, is expected to unveil a series of deals in security. This marks the second foreign visit of his second term, which he will begin by attending the Saudi-US Investment Forum. Notably, the current trip does not include a scheduled visit to Israel, a long-time US ally. However, he may visit Turkey to mediate a possible ceasefire deal between Russia and Ukraine Trump is looking to secure $1 trillion in Saudi investments, including offering the kingdom an arms package worth over $100 billion, according to a Reuters report. A landmark agreement on trade and defence, underway last year, was put on the back burner over Saudi insistence that Israel commit to granting Palestine statehood. Another key goal for the kingdom is US support for a Saudi civil nuclear programme, hinged on its ability to enrich Uranium domestically, according to CNN reporting. CNN also reported that the US had announced a weapons sale of over $1.4 billion to the UAE days before the visit. The UAE has committed to spending $1.4 trillion in US investments over 10 years. The UAE visit will likely yield trade announcements in AI, semiconductors, manufacturing, and energy. Of the three nations, the US maintains the most formalised security ties with Qatar, and had signed a ten-year agreement last year to extend American military presence in the country. According to CNN, the Al Udeid Air Base, located in the desert southwest of Doha, is the biggest US military installation in the Middle East and can house more than 10,000 American troops.
