Latest news with #FedIndependence
Yahoo
8 hours ago
- Business
- Yahoo
Morning Bid: Trump punches at Powell, dollar recoils
A look at the day ahead in European and global markets from Ankur Banerjee Just as investor sentiment was recovering from the latest geopolitical jolt, buoyed by the Israel-Iran ceasefire, President Donald Trump rattled markets again with an attack on the Fed chair that revived worries over the central bank's independence. The result has been another bout of dollar selling, which pushed the euro to its strongest level since November 2021 and the Swiss franc to its highest in a decade. A report from the Wall Street Journal said Trump has toyed with the idea of naming Fed Chair Jerome Powell's replacement as early as September, which could undermine Powell's authority for the remainder of his term to next May. Trump has repeatedly chastised Powell for not cutting interest rates and said he was "terrible" in the latest attack on Wednesday, eroding investor faith in the U.S. central bank's independence in setting policy. Earlier this month, Trump openly contemplated firing Powell and even mused about making himself the Fed chair, although he subsequently backed off. "I know within three or four people who I'm going to pick," Trump told reporters on Wednesday, when asked if he is interviewing candidates to replace Powell. All that uncertainty, along with Trump's chaotic trade policies and their potential threat to economic growth, have taken a toll on the U.S. dollar as investors look to move their money elsewhere. The dollar index, which measures the currency against six other units, is down 10% this year and on course for a sixth straight month in the red. The last time it had a run like this was in 2017. While the "sell America" theme has faded somewhat in the past few weeks, as evidenced by U.S. stocks hitting record highs, investors remain worried about the dollar and how Trump's tariff policies could affect it. Trump's tariffs are coming back onto the markets' radar as the clock ticks down to his July 9 deadline for trade deals. In Thursday's Asia trade, futures indicated a muted open for European stock markets. Investors will keep an eye on defence stocks after NATO leaders backed the big increase in defence spending that Trump had demanded. The big news in the corporate world was Shell denying it was in talks to buy British rival BP, after the Wall Street Journal reported on Wednesday that the oil majors were in early discussions about a takeover. Key developments that could influence markets on Thursday: Economic events: Germany Gfk consumer sentiment for July Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (By Ankur Banerjee; Editing by Edmund Klamann) Sign in to access your portfolio
Reuters
10 hours ago
- Business
- Reuters
Morning Bid: Trump punches at Powell, dollar recoils
A look at the day ahead in European and global markets from Ankur Banerjee Just as investor sentiment was recovering from the latest geopolitical jolt, buoyed by the Israel-Iran ceasefire, President Donald Trump rattled markets again with an attack on the Fed chair that revived worries over the central bank's independence. The result has been another bout of dollar selling, which pushed the euro to its strongest level since November 2021 and the Swiss franc to its highest in a decade. A report from the Wall Street Journal said Trump has toyed with the idea of naming Fed Chair Jerome Powell's replacement as early as September, which could undermine Powell's authority for the remainder of his term to next May. Trump has repeatedly chastised Powell for not cutting interest rates and said he was "terrible" in the latest attack on Wednesday, eroding investor faith in the U.S. central bank's independence in setting policy. Earlier this month, Trump openly contemplated firing Powell and even mused about making himself the Fed chair, although he subsequently backed off. "I know within three or four people who I'm going to pick," Trump told reporters on Wednesday, when asked if he is interviewing candidates to replace Powell. All that uncertainty, along with Trump's chaotic trade policies and their potential threat to economic growth, have taken a toll on the U.S. dollar as investors look to move their money elsewhere. The dollar index , which measures the currency against six other units, is down 10% this year and on course for a sixth straight month in the red. The last time it had a run like this was in 2017. While the "sell America" theme has faded somewhat in the past few weeks, as evidenced by U.S. stocks hitting record highs, investors remain worried about the dollar and how Trump's tariff policies could affect it. Trump's tariffs are coming back onto the markets' radar as the clock ticks down to his July 9 deadline for trade deals. In Thursday's Asia trade, futures indicated a muted open for European stock markets. Investors will keep an eye on defence stocks after NATO leaders backed the big increase in defence spending that Trump had demanded. The big news in the corporate world was Shell (SHEL.L), opens new tab denying it was in talks to buy British rival BP (BP.L), opens new tab, after the Wall Street Journal reported on Wednesday that the oil majors were in early discussions about a takeover. Key developments that could influence markets on Thursday: Economic events: Germany Gfk consumer sentiment for July Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here.
Yahoo
10 hours ago
- Business
- Yahoo
Morning Bid: Trump punches at Powell, dollar recoils
A look at the day ahead in European and global markets from Ankur Banerjee Just as investor sentiment was recovering from the latest geopolitical jolt, buoyed by the Israel-Iran ceasefire, President Donald Trump rattled markets again with an attack on the Fed chair that revived worries over the central bank's independence. The result has been another bout of dollar selling, which pushed the euro to its strongest level since November 2021 and the Swiss franc to its highest in a decade. A report from the Wall Street Journal said Trump has toyed with the idea of naming Fed Chair Jerome Powell's replacement as early as September, which could undermine Powell's authority for the remainder of his term to next May. Trump has repeatedly chastised Powell for not cutting interest rates and said he was "terrible" in the latest attack on Wednesday, eroding investor faith in the U.S. central bank's independence in setting policy. Earlier this month, Trump openly contemplated firing Powell and even mused about making himself the Fed chair, although he subsequently backed off. "I know within three or four people who I'm going to pick," Trump told reporters on Wednesday, when asked if he is interviewing candidates to replace Powell. All that uncertainty, along with Trump's chaotic trade policies and their potential threat to economic growth, have taken a toll on the U.S. dollar as investors look to move their money elsewhere. The dollar index, which measures the currency against six other units, is down 10% this year and on course for a sixth straight month in the red. The last time it had a run like this was in 2017. While the "sell America" theme has faded somewhat in the past few weeks, as evidenced by U.S. stocks hitting record highs, investors remain worried about the dollar and how Trump's tariff policies could affect it. Trump's tariffs are coming back onto the markets' radar as the clock ticks down to his July 9 deadline for trade deals. In Thursday's Asia trade, futures indicated a muted open for European stock markets. Investors will keep an eye on defence stocks after NATO leaders backed the big increase in defence spending that Trump had demanded. The big news in the corporate world was Shell denying it was in talks to buy British rival BP, after the Wall Street Journal reported on Wednesday that the oil majors were in early discussions about a takeover. Key developments that could influence markets on Thursday: Economic events: Germany Gfk consumer sentiment for July Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. (By Ankur Banerjee; Editing by Edmund Klamann) 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
The Guardian
29-05-2025
- Business
- The Guardian
Federal Reserve issues rare statement asserting independence amid Trump pressure
The Federal Reserve issued a rare, strongly worded statement on Thursday after chair Jerome Powell spoke with Donald Trump at the White House Thursday morning, holding firm on the central bank's independence amid pressure from Trump to lower interest rates. The three-paragraph statement emphasized the Fed's independent, nonpartisan role in setting monetary policy based on economic data. 'Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook,' the statement read. Powell told Trump that he and other Fed officials 'will set monetary policy, as required by law, to support maximum employment and stable prices and will make those decisions based solely on careful, objective, and non-political analysis,' according to the statement. That the Fed, which tends to be extremely reserved with public statements, issued the brief memo shows that officials are aware of Trump's pressure campaign and are standing firm on the Fed's independence. At Thursday's White House press briefing, press secretary Karoline Leavitt said that the Fed's statement is 'correct' but that Trump 'did say that the Fed chair is making a mistake by not lowering rates'. Historically, presidents show deference to the Fed, respecting the central bank's independence. But over the last few months, Trump has tried to publicly pressure Powell to lower interest rates, as the Fed did last year, though officials say that the economy – thrown into a tailspin from Trump's trade war – has become too unstable to continue lowering rates. After Trump's 'liberation day' in early April, when he announced a slate of tariffs that ended up crashing US stock markets, Trump wrote on social media: 'This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always 'late,' but he could now change his image, and quickly.' Powell, who was appointed during Trump's first term in 2018, has resisted the pressure from Trump and has warned that high tariffs could lead to inflation and, earlier in May, said that officials are 'in no hurry' to cut interest rates – all statements that seem to have put Trump on edge. ''Too Late' Jerome Powell is a FOOL, who doesn't have a clue,' Trump wrote after the Fed's meeting. Trump had previously threatened to fire Powell, though it's unclear whether the president has the power to do so. Last week, the supreme court allowed Trump to follow through on his dismissal of officials on the National Labor Relations Board, the panel that oversees labor disputes, but judges noted that the Federal Reserve is a 'uniquely structured, quasi-private entity' – implying that it likely won't be so easy for Trump to get rid of Powell.
