Latest news with #LorieLogan
Business Standard
16-07-2025
- Business
- Business Standard
INR pressured by firm dollar amid tariff uncertainty
The Indian rupee declined 18 paise against the US dollar to close at 85.94 (provisional) on Wednesday, tracking a strengthening American currency against major crosses overseas amid uncertainties over the India-US trade pact. Dollar index firmed up near a three-week high as investors awaited the latest producer price index report after hot inflation data pared back expectations of Fed interest rate cuts this year. Meanwhile, Dallas Fed President Lorie Logan supported this view earlier on Wednesday, defending the need to keep interest rates at the current level for some time, to keep inflation at low levels amid the upside risks stemming from Trumps tariffs. However, renewed foreign capital inflows and sliding global crude prices supported the domestic unit. Indian shares recovered from an early slide to end marginally higher on Wednesday as the dollar pulled back slightly and U.S. Treasury yields retreated after rising in the previous session. The benchmark S&P/BSE Sensex ended a choppy session up 63.57 points, or 0.08 percent, at 82,634.48, while the broader NSE Nifty index closed at 25,212.05, up 16.25 points, or 0.06 percent, from its previous close. At the interbank foreign exchange, the rupee opened weak at 86.02 against the dollar. It traded in the range of 85.74-86.05 during the day before closing at 85.94.
Zawya
16-07-2025
- Business
- Zawya
Gold nudges higher as focus turns to US tariff negotiations
Gold prices edged higher on Wednesday, as investors digested economic data showing an increase in U.S. consumer prices last month and awaited further clarity on U.S. President Donald Trump's trade policy. FUNDAMENTALS * Spot gold was up 0.3% at $3,330.99 per ounce, as of 0052 GMT. U.S. gold futures were steady at $3,337.70. * U.S. consumer prices increased in June by the most in five months amid higher costs for some goods, suggesting tariffs were starting to have an impact on inflation and potentially keeping the Federal Reserve on the sidelines until September. * Following the data, Trump said that consumer prices were low and the U.S. Fed should bring down interest rates now. * The U.S. central bank will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs, Dallas Fed Bank President Lorie Logan said. * Gold, often considered as a safe-haven asset during times of economic uncertainties, tends to do well in a low-interest-rate environment. * Focus now shifts to U.S. Producer Price Index data due at 1230 GMT on Wednesday for more cues. * Trump on Saturday threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1. However, Trump said on Monday he was open to further negotiations. * Keeping gold gains in check, the dollar and benchmark U.S. 10-year Treasury yields held near multi week highs. * Spot silver gained 0.2% to $37.81 per ounce after hitting its highest level since September 2011 on Monday. Platinum eased 0.2% to $1,369.42 and palladium slipped 0.6% to $1,198.62. DATA/EVENTS (GMT) 0600 UK CPI, Core CPI YY June 0600 UK CPI Services MM, YY June 0900 EU Total Trade Balance SA May 1230 US PPI Machine Manuf'ing June 1315 US Industrial Production MM June (Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips)
Time of India
16-07-2025
- Business
- Time of India
Asian stocks decline as Fed rate cut bets wane
Traders this month have whittled the odds of Fed easing. Strong June employment data released July 3 led them to rule out a cut after the next meeting concludes July 30 and to downgrade the chances of a September cut, which was fully priced in as recently as late June. Asian stocks declined following mixed US inflation data, leading traders to reduce bets on Federal Reserve interest rate cuts. Concerns about persistent inflation were reinforced by comments from Federal Reserve Bank of Dallas President Lorie Logan, suggesting a cautious approach to monetary policy. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Asian stocks fell at the open Wednesday after mixed US inflation data spurred traders to trim Federal Reserve interest rate-cut MSCI regional gauge dropped 0.4% with losses in Australia, Japan and South Korea. Contracts for the S&P 500 fell 0.3% after the index closed lower Tuesday. Treasuries edged down in early Asian trading with 30-year yields topping 5%. The yen pulled back slightly after falling to its lowest level since Reserve Bank of Dallas President Lorie Logan said that while policymakers will likely need to hold rates steady for a bit longer to fully cool inflation as data signaled companies are beginning to pass some tariff-related costs to consumers. Traders priced in somewhat lower odds that the Fed will cut rates more than once this year, and the probability of a move in September is now seen as only slightly higher than 50%.'With risks still skewed to the upside, we expect the Fed to remain on hold until it gets more clarity about the relative risks to the inflation and labor market outlooks,' JPMorgan Chase & Co. strategists led by Jay Barry wrote in a note Tuesday. The analysts forecast the first rate cut to come in trade, President Donald Trump said he reached a deal with Indonesia that will see goods from the country face a 19% rate, while US exports won't be taxed. Trump also said he was likely to impose tariffs on pharmaceuticals as soon as the end of the month and that levies on semiconductors could come soon as well, suggesting that those import taxes could hit alongside broad 'reciprocal' rates set for implementation on Aug. President also predicted that he could strike 'two or three' trade deals with countries before implementing his so-called reciprocal tariffs before they are implemented on Aug. 1, saying that an agreement with India was among the most the Office of the US Trade Representative on Tuesday opened an investigation into Brazil over its trade practices. Trump had threatened a 50% tariff on the consumer price index, excluding the often volatile food and energy categories, increased 0.2% from May. While a decline in car prices helped keep a lid on the figure, goods categories exposed to Trump's levies including toys and appliances rose at the fastest paces in years.'While any tariff-induced boost to inflation is likely to be short-lived, with higher tariffs being announced, it would be wise for the Fed to remain on the sidelines for a few more months at least,' said Seema Shah at Principal Asset Treasury Secretary Scott Bessent suggested that Fed Chair Jerome Powell should step down from the board when his term is up in May 2026. Late Tuesday, Trump said Bessent is 'an option' for the Fed Chair this month have whittled the odds of Fed easing. Strong June employment data released July 3 led them to rule out a cut after the next meeting concludes July 30 and to downgrade the chances of a September cut, which was fully priced in as recently as late June.
Bloomberg
16-07-2025
- Business
- Bloomberg
Logan Says Fed Needs to Hold Rates Longer to Cool Inflation
Federal Reserve Bank of Dallas President Lorie Logan said that while policymakers will likely need to hold interest rates steady for a bit longer to fully cool inflation, it's also possible they may need to pivot to cutting if inflation and labor markets soften. 'All this adds up, for me, to a base case in which monetary policy needs to hold tight for a while longer to bring inflation sustainably back to target — and in this base case, we can sustain maximum employment even with modestly restrictive policy,' Logan said Tuesday.
Yahoo
16-07-2025
- Business
- Yahoo
Fed's Logan says her base case calls for holding rates steady a while longer
By Ann Saphir (Reuters) -The U.S. central bank will probably need to leave interest rates where they are for a while longer to ensure inflation stays low in the face of upward pressure from the Trump administration's tariffs, Dallas Federal Reserve Bank President Lorie Logan said on Tuesday. "My base case is that we'll need to keep interest rates modestly restrictive for some time to complete the work of returning inflation sustainably to the 2% target," Logan said in remarks prepared for delivery to the World Affairs Council of San Antonio. "It's also possible that some combination of softer inflation and a weakening labor market will call for lower rates fairly soon," she said, noting that tariffs may not push up inflation as much or as persistently as expected, and that slight signs of cooling in recent labor market data along with pessimism among businesses and households could portend a worsening outlook for economic activity. The Fed has kept its policy rate in the 4.25%-4.50% range since last December. Most policymakers have signaled they want to wait at least a couple more months before resuming rate cuts because they are worried that higher prices from tariffs could undo what has been several months of relatively benign inflation data. The rise in consumer prices in June suggests that inflation by the Fed's targeted measure -- the 12-month increase in the price index for personal consumption expenditures, which in May was 2.3% -- will "probably move up a bit," Logan said. "I'd like to see low inflation continue longer to be convinced," she said. At the same time, the labor market is solid, the stock market is at near all-time highs, and fiscal policy appears set to be a "tailwind" for growth, she said. Earlier this month Congress passed President Donald Trump's domestic policy bill that makes his 2017 tax cuts permanent, among other measures. "All this adds up, for me, to a base case in which monetary policy needs to hold tight for a while longer to bring inflation sustainably back to target — and in this base case, we can sustain maximum employment even with modestly restrictive policy," Logan said. Cutting rates too soon, she said, would risk deeper economic scars and a longer road to price stability. Cutting rates too late risks allowing the labor market to weaken more, though the Fed would "have the option of cutting rates further to get employment back on track," Logan said. For now, Logan said, monetary policy is "well positioned," a phrase that Fed Chair Jerome Powell has repeatedly used to describe the Fed's readiness to act when the data signal it is time. 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
