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Business Standard
6 days ago
- Business
- Business Standard
Dollar index rebounds from 6-week low
The dollar index regained strength on Tuesday morning after a sharp slide to a near six week low in the previous session. The greenback came under pressure following weak economic data from US. Data showed that US manufacturing activity contracted more than expected in May. ISM said its manufacturing PMI slipped to 48.5 in May from 48.7 in April, with a reading below 50 indicating contraction. With the unexpected decline, the manufacturing PMI dipped to its lowest level hitting 48.4 in November 2024. Moreover, dollar was pressured amid remarks from Feds Waller that he still supports the idea of cutting interest rates later this year, even if the job market holds steady, choosing to "look through" any inflation caused by tariffs. Federal Reserve Governor Christopher Waller said that interest rate cuts remain possible later this year even with the Trump administration's tariffs likely to push up price pressures temporarily. Meanwhile, Chicago Federal Reserve Bank President Austan Goolsbee also said he continues to think the U.S. central bank will be able to lower short-term borrowing costs after the "dirt in the air" of uncertainty from tariff policies gets cleared up. Goolsbee further stated his ongoing belief that if the economy remains stable and tariffs do not prove to be as severe as announced on April 2, the Feds policy rate is likely to be notably lower within the next 15 months. The dollar index that measures the greenback against a basket of currencies is quoting at 98.76, up 0.13% on the day with basket currencies EURUSD and GBPUSD easing to the same tune.
Yahoo
29-05-2025
- Business
- Yahoo
Fed's Goolsbee: if tariffs are avoided, policy rate can come down
(Reuters) -Chicago Federal Reserve Bank President Austan Goolsbee on Thursday said he believes that if big tariffs could be avoided, either through trade deals or otherwise, the central bank could likely cut interest rates, given the underlying strength of the economy and the direction of inflation. Goolsbee did not comment directly on a ruling Wednesday by a US trade court that blocked many of the tariffs put on by the Trump administration, including the aggressive "Liberation Day" levies from April 2. Before that date, Goolsbee said, the labor market was stable and inflation was heading towards the Fed's 2% goal, conditions that would allow the Fed to bring the policy rate down to its long-term settling point, well below the current 4.25%-4.5% rate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Fed's Goolsbee: if tariffs are avoided, policy rate can come down
(Reuters) -Chicago Federal Reserve Bank President Austan Goolsbee on Thursday said he believes that if big tariffs could be avoided, either through trade deals or otherwise, the central bank could likely cut interest rates, given the underlying strength of the economy and the direction of inflation. Goolsbee did not comment directly on a ruling Wednesday by a US trade court that blocked many of the tariffs put on by the Trump administration, including the aggressive "Liberation Day" levies from April 2. Before that date, Goolsbee said, the labor market was stable and inflation was heading towards the Fed's 2% goal, conditions that would allow the Fed to bring the policy rate down to its long-term settling point, well below the current 4.25%-4.5% rate.
See - Sada Elbalad
13-05-2025
- Business
- See - Sada Elbalad
Gold Prices Rise As Markets Await US Inflation Data
Waleed Farouk Gold prices rose in local markets during trading on Tuesday, with the ounce rising on the global stock exchange, amid markets awaiting US inflation data to determine US monetary policy trends and gold price movements in the coming period. Gold prices rose in local markets by about EGP 20 compared to yesterday's close, with the price of 21-karat gold reaching EGP 4,625 per gram, while the price of an ounce rose by $7, reaching $3,245. The price of 24-karat gold reached EGP 5,286 per gram, the price of 18-karat gold reached EGP 3,964 per gram, and the price of 14-karat gold reached EGP 3,084 per gram, while the price of the gold pound reached EGP 37,000 per gram. Gold prices in local markets fell by EGP 110 during trading on Monday. A gram of 21-karat gold opened at EGP 4,715, touched EGP 4,555, and closed at EGP 4,605. Meanwhile, an ounce fell by $87, opening at $3,325, touching $3,215, and closing at $3,238. Gold prices rebounded, following a sharp decline on Monday following the announcement of a trade agreement between the United States and China. The sharp drop in gold prices on Monday followed the announcement of a temporary truce between the United States and China regarding tariffs. The United States agreed to reduce import tariffs from 145% to 30%, while China reduced tariffs from 125% to 10%. Markets are concerned about the lack of details in the trade agreement, which could push prices to any of the record highs reached last month. Therefore, the current decline could be a buying opportunity. The agreement eased trade tensions and fueled a rally in global stock markets, while the dollar rose to a one-month high—two factors that weaken gold's appeal. Chicago Federal Reserve Bank President Austin Goolsbee warned that current tariff levels will continue to stimulate inflation, according to the New York Times. Meanwhile, Deutsche Bank issued a report stating that easing trade restrictions on China will not lead to a rapid interest rate cut by the Federal Reserve. Meanwhile, markets are awaiting the US Consumer Price Index report for April later today, which could shape the Fed's policy outlook. A lower-than-expected CPI reading could ease pressure on the Federal Reserve and weaken the dollar, providing short-term support for gold. However, any upside is likely to reinforce expectations for monetary tightening, boosting yields and negatively impacting gold. Citibank lowered its three-month gold price target from $3,500 to $3,150, citing reduced geopolitical risks and the potential for short-term stability between $3,000 and $3,300. The bank expects continued demand for exchange-traded funds (ETFs) driven by higher savings, but also noted downward pressure from weak jewelry demand and increased supply. In related news, markets are awaiting U.S. Producer Price Index (PPI) and retail sales data this week; weekly U.S. jobless claims; the Empire State Manufacturing Survey; the Philadelphia Manufacturing Survey; Federal Reserve Chairman Jerome Powell's remarks in Washington, D.C., on Thursday; and the University of Michigan's preliminary consumer confidence survey on Friday. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War
CBS News
20-04-2025
- Business
- CBS News
Transcript: Chicago Fed president Austan Goolsbee on "Face the Nation with Margaret Brennan," April 20, 2025
The following is the transcript of an interview with Austan Goolsbee, Chicago Federal Reserve Bank president, that aired on "Face the Nation with Margaret Brennan" on April 20, 2025. WEIJIA JIANG: We turn now to the economy and the president of the Chicago Federal Reserve Bank, Austan Goolsbee, he joins us this morning from Chicago. Austan, it's great to see you this morning. AUSTAN GOOLSBEE: Yeah. Thank you for having me, Weijia. WEIJIA JIANG: I want to talk about President Trump's tariffs plan, because last week, Federal Reserve Chairman Jerome Powell said tariff increases were higher than expected, and the economic effects will be too, including higher inflation and slower growth. Do you agree with that assessment? AUSTAN GOOLSBEE: Well, look, I'm out here. The Chicago Fed district is kind of the heart of the Midwest, Iowa, Illinois, Indiana, Wisconsin, Michigan. Folks, when I'm out talking to them, business people and civic leaders have been saying for months that they had anxiety that if the tariffs were going to be as big as- as what- what they were saying they might be in February, March, that that would have a pretty significant impact on their operations. The tariff announcement, April 2, was definitely bigger than- than what- what they had been expressing, but there's just a lot of question marks. We don't know 90 days from now, when, when they've revisited the tariffs, we just don't know how big they're going to be. WEIJIA JIANG: Yeah, and the administration says they have a lot of deals in the works, so we have to wait to see what those look like. Trump's former top economic adviser Gary Cohn, was on CNBC talking about what he is hearing from business executives about how they are impacting consumers right now. I want to play that- some of that for you. (BEGIN SOUND ON TAPE) GARY COHN: What everyone's worried about is June, July and August. Are we just pulling all this demand forward from the summer? Because people that were going to buy stuff naturally through the next six months are saying, Look, I'm going to save the tariff. I'm going to buy it now. (END SOUND ON TAPE) WEIJIA JIANG: So, he's talking about people trying to get ahead of the tariffs in case no deals are reached in case those high numbers do get put into effect. So I wonder if you're hearing the same from your contacts in Chicago that people are trying to rush out there to buy, and how does that impact your outlook for the economy? AUSTAN GOOLSBEE: Yeah, that kind of preemptive purchasing is probably even more pronounced on the business side, where in anticipation, a lot of the imports that the tariffs would apply to, especially in the auto sector, are things that are parts, components, supplies that go into the manufacturing of other products. So we heard a lot about preemptive building up of inventories that could last 60 days, 90 days, if there were going to be more uncertainty. That raises the possibility that that Gary Cohn raised there, that activity might look artificially high in the initial and then by the summer, might fall off, because people had bought it all and brought it forward. I'm still hopeful, and the people that I talked to out in the Midwest are still hopeful that on the back end of this, it would be more like what Secretary Besent said, that this could be a spark to lead to a new he called it golden age of global trade. If we can get through this, it's important to remember the hard data coming into April was pretty good, the unemployment rate around steady, full employment, inflation coming down. It's just a desire of people expressing they don't want to go back to kind of 21 and 22 at a time when inflation was- was really raging out of control. WEIJIA JIANG: Got it. I do want to go back to Jay Powell's remarks about the impact of tariffs, or potential impact, because they prompted President Trump to lash out by declaring "Powell's termination cannot come fast enough." Here's what the President said when reporters pressed if he has the power to remove Powell. (BEGIN SOUND ON TAPE) DONALD TRUMP: I'm not happy with him. I let him know it, and if I want him out, he'll be out of there real fast, believe me. (END SOUND ON TAPE) WEIJIA JIANG: Now, Austan, I know the Fed does not wade into politics, and I'm not going to ask you to do that, but I wonder if statements like this undermine or complicate your job as an apolitical institution? AUSTAN GOOLSBEE: Look, I'm glad you didn't ask me for legal advice, because I have an econ PhD. Don't ever ask legal advice from somebody like me. I would say, monetary independence- before I was ever at the Fed, I was a research economist at the University of Chicago. There's virtual unanimity among economists that monetary independence from political interference, that the Fed or any central bank be able to do the job that it needs to do, is really important. And they came to that not as a theory, but just by looking around the world at places where they don't have monetary independence. And the fact is, the inflation rate is higher, growth is slower, the job market is worse. So we really- I strongly hope that we do not move ourselves into an environment where monetary independence is questioned. Because that- that would undermine the credibility of the Fed. WEIJIA JIANG: All right, Austan, thank you so much for your time, and Happy Easter to you. AUSTAN GOOLSBEE: Yeah, happy Easter. Great to see you, Weijia. WEIJIA JIANG: We'll be right back.
