Latest news with #InterestRates
&w=3840&q=100)
First Post
4 days ago
- Business
- First Post
In a rare move, US Federal Reserve issues statement reaffirming its non-partisan stance amid Trump's pressure
In a rare move, the US Federal Reserve issued a statment reaffirming its non-partisan stance after the central bank's Chair Jerome Powell met with US President Donald Trump read more US Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a Federal Open Market Committee meeting at the Federal Reserve in Washington, DC, on Wednesday. AFP On Thursday, the US Federal Reserve issued a rare but strongly worded statement after the body's Chair, Jerome Powell, met US President Donald Trump at the White House. In the statement, the American central bank reaffirmed its commitment to independence amid pressure from the Trump administration to reduce interest rates. In the three-paragraph statement, the bank emphasised that it plays a non-partisan role while setting up monetary policies and these regulations are completely derived from 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. STORY CONTINUES BELOW THIS AD According to the statement, 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." The stern stance on the matter surprised many since the Fed is known to be extremely reserved and rarely issues such statements. What does the White House have to say? During the Thursday White House press briefing after the meeting, Press Secretary Karoline Leavitt said that the Fed's statement is 'correct'. However, she maintained that Trump 'did say that the Fed chair is making a mistake by not lowering rates'. In the past, American presidents showed deference to how the Fed operates, respecting the independence of the Central Bank. However, in the last few months, Trump has often tried to publicly pressure Powell to lower interest rates, as the Fed did last year . However, central bank officials argue that the American economy went into a tailspin after Trump unleashed a trade war by increasing tariffs on imports from several nations. While the US stock market was crashing after Trump announced his 'Liberation Day' tariffs, the POTUS took to TruthSocial to send a message to Powell. '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," he wrote in the post. Interestingly, Powell was appointed by Trump to the office in 2018, when the Republican firebrand was serving his first term in the White House. However, after Trump came back, he threatened to fire Powell, though it's unclear whether the president has the power to do so. Last week, the US Supreme Court allowed Trump to follow through on his dismissal of officials on the National Labour Relations Board, the panel that oversees labour disputes. But during the ruling, the judge 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. STORY CONTINUES BELOW THIS AD
Irish Times
5 days ago
- Business
- Irish Times
European stocks dip following two-day rally as investors eye US-EU trade talks
European shares dipped on Wednesday, following a two-day relief rally after US President Donald Trump delayed tariffs on the EU, with investors returning to a wait-and-see approach on trade talks. The pan-European Stoxx 600 index ended the session down 0.6 per cent. Dublin The Iseq All-Share index ended the session down 0.4 per cent at 11,367.46. Banking stocks were mixed, as investors upped bets on the European Central Bank (ECB) will cut interest rates next week. AIB lost almost 1 per cent to €6.70. However, Bank of Ireland managed to eek out a 0.2 per cent gain, to €11.80. Still, house building stocks advanced, with Cairn Homes rising 2 per cent to €2.29 and Glenveagh Properties moving 0.9 per cent higher to €1.80. READ MORE Ryanair lost 0.5 per cent to €23.72. London The FTSE 100 in London fell 0.6 per cent. Retail stocks, such as Sainsbury's, were among the notable fallers as industry data showed another jump in food inflation in recent weeks. In company news, home improvement giant Kingfisher was lower at the end of trading despite a rise in sales. The B&Q owner said the chain was boosted by rocketing demand for its garden and seasonal ranges in the UK due to warm weather, although trading challenges remained across its operations in France. Kingfisher shares finished down 3.5 per cent on Wednesday. Elsewhere, Pets at Home added 1.6 per cent as growth in its vet arm continued to boost revenues and profits. It helped the UK's largest pet retailer to offset a 'subdued' market for pet products this year as conditions continue to 'normalise' following a boom in puppy and kitten ownership during the Covid pandemic. Of Irish interest, Dublin-based, but London-listed C & C Group moved 3.2 per cent higher after progress in its turnaround plan helped drive a recovery in profits. Europe European carmakers rose 0.7 per cent on the whole, following reports on Tuesday that EU policymakers had asked the region's leading companies to provide details of their US investment plans. German automakers including BMW, Mercedes-Benz and Volkswagen are in talks with Washington on a possible import tariff deal. Germany's main stock index retreated 0.8 per cent after hitting a record high earlier in the session, while the mid-caps index hit its highest since April 2022. In France, the CAC 40 index closed 0.5 per cent lower, reversing earlier gains after gross domestic product figures showed slight growth in the first quarter, as expected. Swedish medical equipment marker Elekta shares jumped 5.9 per cent after beating estimates for fourth-quarter sales. Stellantis dipped 2.2 per cent. The Jeep-maker named insider Antonio Filosa as its top boss. New York Wall Street's main indexes were lower in early afternoon trading, as investors awaited AI bellwether Nvidia's results and minutes from the US Federal Reserve's last policy meeting. Most megacap and growth stocks shed initial gains and were mostly flat. Salesforce was dipped and is also scheduled to report earnings after the bell. All three main Wall Street indexes soared in the previous session after Mr Trump backed down over the weekend from his threat of 50 per cent tariffs on imports from the EU. Yields on long-dated US Government bonds were slightly higher after scaling multi-month highs last week. Global bond markets have been in the spotlight over concerns about fiscal sustainability in big economies including the United States and Japan. In earnings, Michael Kors-owner Capri Holdings advanced after its fourth-quarter revenue beat analyst estimates. Shares of sportswear retailer Dick's Sporting Goods gained after its first-quarter results beat estimates. Cybersecurity firm Okta flagged risks related to the uncertain economic environment but stuck to its full-year outlook. Its shares dropped. Additional reporting, Reuters, Press Association
CBS News
6 days ago
- Business
- CBS News
What's the CD account interest rate forecast for June 2025?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. CD account interest rates could change again in June, depending on several timely factors. Getty Images While certificate of deposit (CD) rates have dipped slightly over the past year, they're still elevated, with some financial institutions offering yields as high as 4.40%. However, rates could fall in the coming months if the Federal Reserve follows through on expected interest rate cuts this year. While the Fed doesn't directly set CD rates, these yields often loosely mirror Fed policy decisions. As of May 27, 2025, the CME Group's FedWatch tool shows a 94.4% chance that the Federal Reserve will hold its target rate steady at 4.25% to 4.50%, and a 5.6% chance of a 0.25 percentage point cut. Still, the Fed has previously pointed to one or two rate cuts by the end of 2025. That suggests rate cuts later this year are more likely than in the near term. If true, savers have a limited window to lock in current high yields. Knowing the direction CD rates are headed may help you make smarter decisions about when to open a CD and what term length to choose. Below, we'll dive deeper into the most likely scenarios for CD rates in June, based on expert analysis and opinion. See how much you could earn with a top CD rate here. What's the CD account interest rate forecast for June 2025? Here are three potential CD account interest rate scenarios that could occur this June, according to the experts we spoke to: CD rates could drop While most economists and rate-watchers don't anticipate the bank to cut the federal funds rate in June, it remains a distinct possibility. If that happens, CD rates could begin to decline shortly after, especially for short- and medium-term certificates, says Michael Crossley, vice president of Treasury Processing at America First Credit Union. "If the Fed were to cut rates at the June meeting, overall CD yields would start to decline," he said "When the Fed makes a rate cut, it decreases funding costs for banks and credit unions. This has a residual incentive to decrease higher yields on deposits," he adds. Still, the timing of those changes won't be the same across all banks. "CD pricing doesn't always drop overnight," Crossley said. "There can be a lag in timing when the Fed adjusts their rate and when CD rates adjust." Derik Farrar, head of Everyday Banking & Borrowing at U.S. Bank, expects banks to act fast if cuts do happen. "I expect most banks to adjust quickly, as the industry entered 2025 expecting rate cuts that haven't materialized," he said. Lock in a high CD rate before rates drop now. CD rates could stagnate This is the most likely scenario, especially since most analysts expect the Federal Reserve to pause rates at its June meeting. Late last year, the Fed signaled that rate cuts were likely in 2025, before clarifying there would be fewer rate cuts. As of May 2025, the Fed has maintained its target rate at 4.25% to 4.50%, keeping rates paused at every meeting so far this year. At its May meeting, Federal Reserve Chair Jerome Powell reiterated, "We're in the right place to wait and see how things evolve. We don't feel like we need to be in a hurry. We feel like it's appropriate to be patient." As noted, most experts project continued economic uncertainty will lead to another rate pause in June. That likely means continued stagnation in CD rates. As Farrar explains, "Consensus expectations generally drive CD pricing because banks balance their maturities with new originations." Crossley adds that CD rate movements are influenced by more than Federal Reserve monetary policy. "CD rates are not set arbitrarily. We monitor not only Federal Reserve policy, but also internal liquidity needs, loan growth, member behavior, competitive market and economic conditions. Right now, the cost of attracting deposits is high based on previous years comparison." Even though the Fed's policy plays a big role, institutions may also stick with current yields unless their own deposit needs or other market conditions incentivize them to change their CD rates this year. "Trying to guess changes in the interest rate market with any consistency is just as impossible as guessing short-term stock market returns," says David Shotwell, president of Shotwell Rutter Baer Financial Planners. "They will adjust to market forces which cannot be predicted." CD rates could increase A rise in CD rates this June is highly unlikely, and the CME FedWatch Tool gives a 0% chance of a rate hike at the next Federal Reserve meeting. Still, there is a scenario where the Fed could bump up the interest rate. Farrar, who doesn't project an increase, points out that higher inflation could shift the Fed's stance. "Inflation or inflation expectations triggering a different outlook from the FOMC would be the driver for rates to rise in June," he said. Crossley notes that banks could conceivably raise CD rates based on specific needs, such as unexpected deposit outflows, rising loan demand or balance sheet strategies. He adds that competition is always a factor. "In markets where institutions are aggressively competing for deposits, one or two may increase rates, in which others will follow suit," he says. The bottom line Understanding where CD rates may be headed can help guide your savings strategy, but that shouldn't be the only factor in your decision. It's just as important to consider the purpose of the money you're setting aside. As Shotwell explains, "We urge clients to not worry about the rate on CDs, but rather the role CDs play in their portfolio. Cash investments, which include money markets and certificates of deposit, are there for safety and liquidity rather than long term growth." Shotwell recommends creating a CD ladder to stagger maturity dates and keep your funds accessible over time. If you anticipate the Fed lowering rates in the coming months, opening a CD now could help you lock in a higher rate while it's still available.
Yahoo
7 days ago
- Business
- Yahoo
Asia stocks muted amid trade caution; Japan dips on BOJ rate hike comments
Most Asian stocks moved in a flat-to-low range on Tuesday as investors remained on edge over more U.S. trade tariffs, while Japanese markets dipped after Bank of Japan Governor Kazuo Ueda signaled that more interest rate hikes were possible. Regional markets received scant trading cues from Wall Street, which was closed on Monday for the Memorial Day holiday. But U.S. stock index futures rose sharply in Asian trade, as investors cheered President Donald Trump's delaying of steep trade tariffs on the European Union. S&P 500 Futures jumped 0.9%. Focus this week, especially in the technology sector, was also on upcoming earnings from artificial intelligence major NVIDIA Corporation (NASDAQ:NVDA), which are due on Wednesday. Japan's Nikkei 225 fell 0.3%, while the TOPIX was flat after BOJ Governor Ueda flagged risks from high underlying inflation, and warned that the central bank will raise interest rates further if the Japanese economy improves. Ueda said that if upcoming economic readings continue to signal strength, the BOJ will further scale back monetary easing. He also said that Japanese inflation was the closest it has been to the BOJ's 2% annual target in 30 years. Ueda's comments come after data last week showed a bigger-than-expected pickup in Japanese consumer inflation, as private spending was supported by strong springtime wage hikes. But Japan's economy shrank in the first quarter of 2025, amid growing concerns over the impact of U.S. trade tariffs on local businesses, especially automakers. Broader Asian markets moved in a flat-to-low range on Tuesday, as investors remained on edge over more U.S. trade tariffs. While Trump did postpone his proposed EU tariffs, he did not address his threat to tariff smartphone imports to the U.S., which could bode poorly for several Asian tech majors. South Korea's KOSPI was among the worst performers in Asia on Tuesday, down 0.5% as chipmakers Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) retreated. Samsung could also be subject to U.S. import duties on smartphones. Trump's smartphone tariff threat was aimed primarily at Apple Inc (NASDAQ:AAPL), which sent shares of the company's Asian suppliers lower this week. Hong Kong and China-listed AAC Technologies (OTC:AACAY) (HK:2018) and Luxshare Precision Industry Co Ltd (SZ:002475) lost nearly 2% each. Xiaomi Corp (HK:1810) lost 0.7% before its quarterly earnings due later in the day. The Hang Seng index added 0.2%, while the mainland Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.4% and 0.1%, respectively. Taiwan's TSMC (TW:2330) fell 1%, while Hon Hai Precision Industry Co Ltd (TW:2317) rose 0.3%. HK-listed shares of (HK:9618) fell sharply after rival Meituan's (HK:3690) CEO Wang Xing flagged heightened competition in China's instant retail market. Singapore's Straits Times index was flat, while Australia's ASX 200 rose 0.1%. BHP Group Ltd (ASX:BHP) rose 1.5% after a report said the miner was in talks to sell some of its Brazilian copper and gold assets to Nexa Group. Gift Nifty 50 Futures for India's Nifty 50 index fell marginally, pointing to a flat open for the index after it surged back above the 25,000 level on Monday. Related articles Asia stocks muted amid trade caution; Japan dips on BOJ rate hike comments US stock futures jump as Trump delays 50% tariffs against the EU China auto stocks take a hit as BYD, Geely offer fresh incentives
The Independent
7 days ago
- Business
- The Independent
Asian shares mostly lower, trading in a narrow range with US markets closed for Memorial Day
Shares were mostly lower in Asia on Tuesday, trading in a narrow range after U.S. markets were closed Monday for the Memorial Day holiday. U.S. futures were and oil prices slipped. Data on consumer confidence and housing prices were due out later on Tuesday. In Tokyo, the Nikkei 225 lost 0.2% to 37,451.60 after the governor of the central bank said he anticipated raising interest rates in coming months due to inflationary pressures. Bank of Japan Gov. Kazuo Ueda said in a speech that Japan was facing pressure from rising food prices, with rice prices doubling in the past year. Inflation in Japan is now higher than in the U.S. or Europe and above the BOJ's target level. But the central bank also has to take into account trade policies, he said without directly mentioning U.S. President Donald Trump 's tariff hikes, that complicate its goal of raising its very low benchmark interest rate of 0.5%. 'We are now closer to the target than at any time during the last three decades, though we are not quite there. Our recent path has been affected in a unique way by supply shocks,' Ueda said. Hong Kong's Hang Seng gained 0.3% to 23,359.94, while the Shanghai Composite index was little changed, at 3,346.48. In South Korea, the Kospi lost 0.4% to 2,632.93. Australia's S&P/ASX 200 held steady at 8,359.20 and Taiwan's Taiex lost 0.6%. In other dealings early Tuesday, U.S. benchmark crude oil lost 23 cents to $61.30 per barrel. Brent crude, the international standard, fell 20 cents to $63.92 per barrel. The U.S. dollar fell to 142.23 Japanese yen from 142.85 yen. The euro rose to $1.1403 from $1.1388. The future for the S&P 500 was up 0.9% and that for the Dow Jones Industrial Average advanced 0.8%. On Monday, European shares closed higher and U.S. futures surged after U.S. President Donald Trump said he would delay a threatened 50% tariff on goods from the European Union to July 9. Germany's DAX added 1.5% to 23,977.83 and the CAC 40 in Paris rose 1% to 7,810.49. Markets were closed in Britain for a holiday. The impact on markets from U.S. President Donald Trump's decision to delay a threatened 50% tariff on imports from the European Union was relatively muted as investors are growing inured to such policy changes, Stephen Innes of SPI Asset Management said in a commentary. 'Investors know this act by heart,' Innes wrote. 'The volatility is still there, but like a horror franchise on its fifth sequel, the jump scares are losing their bite. Panic-selling into a Trump pirouette doesn't pay like it used to — markets have seen this dance before.' The European Union's chief trade negotiator said Monday he had 'good calls' with Trump administration officials and that the EU was 'fully committed' to reaching a trade deal by the July 9 deadline. Just last week, Trump had said on social media that trade talks with the European Union 'were going nowhere' and that 'straight 50%' tariffs could go into effect on June 1. On Friday, U.S. stocks fell as traders weighed whether Trump's latest threats were just negotiating tactics. The S&P 500 lost 0.7% to end its worst week in the last seven. The Dow dropped 0.6% and the Nasdaq composite sank 1%.
