Latest news with #Jerome Powell
Yahoo
16 hours ago
- Business
- Yahoo
US weekly jobless claims rise marginally
WASHINGTON (Reuters) -The number of Americans filing new applications for unemployment benefits increased marginally last week, suggesting that the labor market remained stable, though it is taking longer for laid-off workers to find new opportunities. Initial claims for state unemployment benefits rose 1,000 to a seasonally adjusted 218,000 for the week ended July 26, the Labor Department said on Thursday. Economists polled by Reuters had forecast 224,000 claims for the latest week. The labor market has slowed, with economists saying uncertainty over where President Donald Trump's tariff levels will eventually settle has left businesses wary of adding headcount. But labor supply has also declined amid the White House's immigration crackdown. The Federal Reserve on Wednesday left its benchmark interest rate in the 4.25%-4.50% range, resisting pressure from President Donald Trump to lower borrowing costs. Fed Chair Jerome Powell told reporters the labor market was in balance. But he added because that was partly due to both demand and supply declining, "we do see downside risk in the labor market." The central bank cut rates three times in 2024, with the last move coming in December. Most economists expect it to resume policy easing in September. Employers' hesitancy to increase hiring means there are fewer jobs for those being laid off. Government data on Tuesday showed there were 1.06 job openings for every unemployed person in June compared to 1.33 in January. The number of people receiving benefits after an initial week of aid, a proxy for hiring, were unchanged at a seasonally adjusted 1.946 million during the week ending July 19, the claims report showed. The claims data has no bearing on July's employment report, due on Friday as it falls outside the survey period. Nonfarm payrolls likely increased by 110,000 jobs last month after rising 147,000 in June, a Reuters survey of economists showed. The unemployment rate is forecast to rise to 4.2% from 4.1% in June. (Reporting By Lucia Mutikani; Editing by Chizu Nomiyama) Sign in to access your portfolio
CBC
6 days ago
- Business
- CBC
Fed chair Jerome Powell calls out Donald Trump
Andrew Chang explains what's behind a tense exchange between U.S. President Donald Trump and Federal Reserve chair Jerome Powell. Images provided by Getty Images, The Canadian Press and Reuters.
Times
6 days ago
- Business
- Times
Trump hails ‘good meeting' with Jerome Powell over interest rates
President Trump said he had a 'very good meeting on interest rates' with the Federal Reserve chairman after the pair clashed during a rare presidential visit to the US central bank. Trump said on Friday that he and Jerome Powell had spoken privately about interest rates, which the president says should be lowered immediately to boost the economy. 'We had a very good meeting … I think we had a very good meeting on interest rates,' Trump told reporters. The Fed is widely expected to leave its benchmark interest rate in the range of 4.25 per cent to 4.5 per cent at the conclusion of a two-day policy meeting next week. During a visit to the Fed on Thursday, Trump criticised the cost of renovating two buildings at its headquarters in Washington that were built nearly a century ago and continued to press for lower interest rates. The encounter between them became heated after Trump told reporters that the project was now estimated to have cost $3.1 billion, significantly above the Fed's official estimate of $2.5 billion. 'I am not aware of that,' Powell said, shaking his head. Trump handed him a piece of paper, which Powell examined. 'You just added in a third building,' the Fed chief said. He said Trump had included the cost of renovating the Martin Building, which was done five years ago and is not part of the present project. Russell Vought, the White House budget director, and James Blair, Trump's deputy chief of staff, who have spearheaded criticism of the renovation as overly costly and ostentatious, later told reporters that they still had questions about the project. Trump, who called Powell a 'numbskull' this week for failing to heed the White House's demand for a large rate cut, wrapped up his visit by saying he did not intend to fire Powell, as he has frequently suggested he would. 'To do so is a big move and I just don't think it's necessary,' Trump said after the visit. In a post later on Truth Social, Trump said of the renovation: 'It is what it is and, hopefully, it will be finished ASAP. The cost overruns are substantial but, on the positive side, our country is doing very well and can afford just about anything.' The president has repeatedly demanded that Powell slash rates by three percentage points or more. His criticism of Powell and his comments about firing him have previously rattled financial markets. 'I'd love him to lower interest rates,' Trump said as he wrapped up the tour, as Powell stood by, his face expressionless. Powell typically spends the Thursday afternoon before a rate-setting meeting doing back-to-back calls with Fed bank presidents as part of his preparations for the session. The visit came as Trump battles to deflect attention from a political crisis over his administration's refusal to release files related to the late convicted sex offender Jeffrey Epstein, reversing a campaign promise. The Federal Reserve said on Friday it was 'grateful' for Trump's encouragement to complete a renovation of two buildings at its headquarters in Washington and that it 'looked forward' to seeing the project through to completion. 'We remain committed to continuing to be careful stewards of these resources as we see the project through to completion,' it said in a statement. 'The Federal Reserve was honoured to welcome the president yesterday for a visit to our historic headquarters,' the Fed said.
Bloomberg
23-07-2025
- Business
- Bloomberg
Firing Powell Won't Save Much on Debt Costs, Deutsche Bank Warns
President Donald Trump last month added federal debt costs as a fresh reason why Jerome Powell should slash interest rates. But firing the Federal Reserve chair and forcing rates down wouldn't help, a new analysis shows. 'Removing Powell won't move the needle' on the Treasury Department's debt-interest costs, Matthew Luzzetti, chief US economist for Deutsche Bank AG, wrote in a note Wednesday with strategists Matthew Raskin and Steven Zeng.
Yahoo
23-07-2025
- Business
- Yahoo
Gold Holds Gains With Focus on US Trade Progress and Fed Rates
(Bloomberg) -- Gold held a three-day advance, as US President Donald Trump announced a highly-anticipated trade deal with Japan, signaling progress on fraught talks ahead of his Aug. 1 tariff deadline. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US Why the Federal Reserve's Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital Bullion traded near $3,430 an ounce — up 2.5% so far this week — as Trump announced it would impose 15% and 19% tariffs on goods from Japan and the Philippines, a strategic geopolitical ally. With several countries racing to secure trade deals, investors are seeking clarity specifically on progress with China. Treasury Secretary Scott Bessent said he will meet his Chinese counterparts in Stockholm next week for their third round of talks aimed at extending a tariff truce and widening the discussions. Traders were also monitoring an easing dollar and falling Treasury yields after Bessent offered support for Federal Reserve Chair Jerome Powell, who has found himself in the line of Trump's fire for holding interest rates steady while waiting to see if duties impact inflation. Lower yields and a weaker greenback tend to benefit the precious metal, as it doesn't pay interest and is priced in the currency. Gold has climbed about a third this year, as uncertainty around Trump's aggressive attempts to reshape global trade and conflicts in Ukraine and the Middle East sparked flight to havens. The precious metal has consolidated within a tight range over the past few months, though this week's gains have pushed prices to trade about $70 short of April's record high above $3,500 an ounce. Meanwhile, with few major US economic data releases due in the coming days and Fed speakers in a blackout period ahead of next week's policy meeting, traders will be watching for a dovish signal from officials when they gather in Washington from July 29-30. Spot gold was little changed at $3,430.75 an ounce at 8:39 a.m. in Singapore. The Bloomberg Dollar Spot Index was up 0.1%, after a loss of 0.4% in the previous session. Silver was steady, while platinum and palladium fell. Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Burning Man Is Burning Through Cash A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All ©2025 Bloomberg L.P. 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
