Latest news with #Trumpification
7NEWS
5 hours ago
- Business
- 7NEWS
Reserve Bank predicted to slash interest rates on Tuesday amid cooling inflation
Markets are almost certain the Reserve Bank of Australia will cut interest rates at its August meeting despite the board facing an increasingly uncertain environment. Benign quarterly inflation figures released by the Australian Bureau of Statistics in July should convince the board to cut the cash rate in a two-day meeting that started on Monday, AMP deputy chief economist Diana Mousina said. Know the news with the 7NEWS app: Download today In fact, a cut of 25 basis points to 3.6 per cent should have happened already, Mousina declared. Mortgage holders will be hoping lightning doesn't strike twice after the central bank's board voted in a 6-3 decision to leave rates on hold in July, despite markets pricing in a near-certain chance of a cut. The majority of economists also expect a cut this time around, including 31 out of 34 experts surveyed by comparison website Finder. But with markets predicting another two cuts following this one, RBA governor Michele Bullock is likely to try to pare back expectations in her post-meeting communications after the meeting wraps up on Tuesday. 'We think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now, given their concern that upside inflation risks may occur again in Australia,' Mousina said. Another potential concern for Bullock could be developments at the US central bank. Mousina said we could be seeing the 'Trumpification' of the Federal Reserve after the US president 's appointment of ally Stephen Miran to replace departing governor Adriana Kugler. Miran's appointment heralds a more dovish Fed board, which could mean lower US interest rates if Donald Trump gets his way. 'Stephen Miran's appointment to the Federal Reserve board will likely increase pressure for deeper rate cuts while broadening concerns around Fed independence,' JP Morgan chief economist Bruce Kasman said. While the RBA has been more focused on domestic developments in recent months, the Fed's outsized influence on global borrowing costs can set the tone for international monetary policy. When the Fed cuts, central banks around the world have tended to follow. And a dovish turn could have consequences for the Australian dollar, investor expectations and the broader economy.
West Australian
18 hours ago
- Business
- West Australian
Reserve Bank of Australia meets: Hopes RBA won't repeat shock rates hold in August
Markets are almost certain the Reserve Bank of Australia will cut interest rates at its August meeting despite the board facing an increasingly uncertain environment. Benign quarterly inflation figures released by the Australian Bureau of Statistics in July should convince the board to cut the cash rate in a two-day meeting that starts on Monday, AMP deputy chief economist Diana Mousina said. In fact, a cut of 25 basis points to 3.6 per cent should have happened already, Ms Mousina said. Mortgage holders will be hoping lighting doesn't strike twice after the central bank's board voted in a 6-3 decision to leave rates on hold in July, despite markets pricing in a near-certain chance of a cut. The majority of economists also expect a cut this time around, including 31 out of 34 experts surveyed by comparison website Finder. But with markets predicting another two cuts following this one, RBA governor Michele Bullock is likely to try to pare back expectations in her post-meeting communications after the meeting wraps up on Tuesday. 'We think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now, given their concern that upside inflation risks may occur again in Australia,' Ms Mousina said. Another potential concern for Ms Bullock could be developments at the US central bank. Ms Mousina said we could be seeing the 'Trumpification' of the Federal Reserve after the US president's appointment of ally Stephen Miran to replace departing governor Adriana Kugler. Mr Miran's appointment heralds a more dovish Fed board, which could mean lower US interest rates if Donald Trump gets his way. 'Stephen Miran's appointment to the Federal Reserve board will likely increase pressure for deeper rate cuts while broadening concerns around Fed independence,' JP Morgan chief economist Bruce Kasman said. While the RBA has been more focused on domestic developments in recent months, the Fed's outsized influence on global borrowing costs can set the tone for International monetary policy. When the Fed cuts, central banks around the world have tended to follow. And a dovish turn could have consequences for the Australian dollar, investor expectations and the broader economy.
The Advertiser
20 hours ago
- Business
- The Advertiser
Hopes RBA won't repeat shock rates hold as board meets
Markets are almost certain the Reserve Bank of Australia will cut interest rates at its August meeting despite the board facing an increasingly uncertain environment. Benign quarterly inflation figures released by the Australian Bureau of Statistics in July should convince the board to cut the cash rate in a two-day meeting that starts on Monday, AMP deputy chief economist Diana Mousina said. In fact, a cut of 25 basis points to 3.6 per cent should have happened already, Ms Mousina said. Mortgage holders will be hoping lighting doesn't strike twice after the central bank's board voted in a 6-3 decision to leave rates on hold in July, despite markets pricing in a near-certain chance of a cut. The majority of economists also expect a cut this time around, including 31 out of 34 experts surveyed by comparison website Finder. But with markets predicting another two cuts following this one, RBA governor Michele Bullock is likely to try to pare back expectations in her post-meeting communications after the meeting wraps up on Tuesday. "We think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now, given their concern that upside inflation risks may occur again in Australia," Ms Mousina said. Another potential concern for Ms Bullock could be developments at the US central bank. Ms Mousina said we could be seeing the "Trumpification" of the Federal Reserve after the US president's appointment of ally Stephen Miran to replace departing governor Adriana Kugler. Mr Miran's appointment heralds a more dovish Fed board, which could mean lower US interest rates if Donald Trump gets his way. "Stephen Miran's appointment to the Federal Reserve board will likely increase pressure for deeper rate cuts while broadening concerns around Fed independence," JP Morgan chief economist Bruce Kasman said. While the RBA has been more focused on domestic developments in recent months, the Fed's outsized influence on global borrowing costs can set the tone for International monetary policy. When the Fed cuts, central banks around the world have tended to follow. And a dovish turn could have consequences for the Australian dollar, investor expectations and the broader economy. Markets are almost certain the Reserve Bank of Australia will cut interest rates at its August meeting despite the board facing an increasingly uncertain environment. Benign quarterly inflation figures released by the Australian Bureau of Statistics in July should convince the board to cut the cash rate in a two-day meeting that starts on Monday, AMP deputy chief economist Diana Mousina said. In fact, a cut of 25 basis points to 3.6 per cent should have happened already, Ms Mousina said. Mortgage holders will be hoping lighting doesn't strike twice after the central bank's board voted in a 6-3 decision to leave rates on hold in July, despite markets pricing in a near-certain chance of a cut. The majority of economists also expect a cut this time around, including 31 out of 34 experts surveyed by comparison website Finder. But with markets predicting another two cuts following this one, RBA governor Michele Bullock is likely to try to pare back expectations in her post-meeting communications after the meeting wraps up on Tuesday. "We think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now, given their concern that upside inflation risks may occur again in Australia," Ms Mousina said. Another potential concern for Ms Bullock could be developments at the US central bank. Ms Mousina said we could be seeing the "Trumpification" of the Federal Reserve after the US president's appointment of ally Stephen Miran to replace departing governor Adriana Kugler. Mr Miran's appointment heralds a more dovish Fed board, which could mean lower US interest rates if Donald Trump gets his way. "Stephen Miran's appointment to the Federal Reserve board will likely increase pressure for deeper rate cuts while broadening concerns around Fed independence," JP Morgan chief economist Bruce Kasman said. While the RBA has been more focused on domestic developments in recent months, the Fed's outsized influence on global borrowing costs can set the tone for International monetary policy. When the Fed cuts, central banks around the world have tended to follow. And a dovish turn could have consequences for the Australian dollar, investor expectations and the broader economy. Markets are almost certain the Reserve Bank of Australia will cut interest rates at its August meeting despite the board facing an increasingly uncertain environment. Benign quarterly inflation figures released by the Australian Bureau of Statistics in July should convince the board to cut the cash rate in a two-day meeting that starts on Monday, AMP deputy chief economist Diana Mousina said. In fact, a cut of 25 basis points to 3.6 per cent should have happened already, Ms Mousina said. Mortgage holders will be hoping lighting doesn't strike twice after the central bank's board voted in a 6-3 decision to leave rates on hold in July, despite markets pricing in a near-certain chance of a cut. The majority of economists also expect a cut this time around, including 31 out of 34 experts surveyed by comparison website Finder. But with markets predicting another two cuts following this one, RBA governor Michele Bullock is likely to try to pare back expectations in her post-meeting communications after the meeting wraps up on Tuesday. "We think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now, given their concern that upside inflation risks may occur again in Australia," Ms Mousina said. Another potential concern for Ms Bullock could be developments at the US central bank. Ms Mousina said we could be seeing the "Trumpification" of the Federal Reserve after the US president's appointment of ally Stephen Miran to replace departing governor Adriana Kugler. Mr Miran's appointment heralds a more dovish Fed board, which could mean lower US interest rates if Donald Trump gets his way. "Stephen Miran's appointment to the Federal Reserve board will likely increase pressure for deeper rate cuts while broadening concerns around Fed independence," JP Morgan chief economist Bruce Kasman said. While the RBA has been more focused on domestic developments in recent months, the Fed's outsized influence on global borrowing costs can set the tone for International monetary policy. When the Fed cuts, central banks around the world have tended to follow. And a dovish turn could have consequences for the Australian dollar, investor expectations and the broader economy. Markets are almost certain the Reserve Bank of Australia will cut interest rates at its August meeting despite the board facing an increasingly uncertain environment. Benign quarterly inflation figures released by the Australian Bureau of Statistics in July should convince the board to cut the cash rate in a two-day meeting that starts on Monday, AMP deputy chief economist Diana Mousina said. In fact, a cut of 25 basis points to 3.6 per cent should have happened already, Ms Mousina said. Mortgage holders will be hoping lighting doesn't strike twice after the central bank's board voted in a 6-3 decision to leave rates on hold in July, despite markets pricing in a near-certain chance of a cut. The majority of economists also expect a cut this time around, including 31 out of 34 experts surveyed by comparison website Finder. But with markets predicting another two cuts following this one, RBA governor Michele Bullock is likely to try to pare back expectations in her post-meeting communications after the meeting wraps up on Tuesday. "We think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now, given their concern that upside inflation risks may occur again in Australia," Ms Mousina said. Another potential concern for Ms Bullock could be developments at the US central bank. Ms Mousina said we could be seeing the "Trumpification" of the Federal Reserve after the US president's appointment of ally Stephen Miran to replace departing governor Adriana Kugler. Mr Miran's appointment heralds a more dovish Fed board, which could mean lower US interest rates if Donald Trump gets his way. "Stephen Miran's appointment to the Federal Reserve board will likely increase pressure for deeper rate cuts while broadening concerns around Fed independence," JP Morgan chief economist Bruce Kasman said. While the RBA has been more focused on domestic developments in recent months, the Fed's outsized influence on global borrowing costs can set the tone for International monetary policy. When the Fed cuts, central banks around the world have tended to follow. And a dovish turn could have consequences for the Australian dollar, investor expectations and the broader economy.
Perth Now
21 hours ago
- Business
- Perth Now
Hopes RBA won't repeat shock rates hold as board meets
Markets are almost certain the Reserve Bank of Australia will cut interest rates at its August meeting despite the board facing an increasingly uncertain environment. Benign quarterly inflation figures released by the Australian Bureau of Statistics in July should convince the board to cut the cash rate in a two-day meeting that starts on Monday, AMP deputy chief economist Diana Mousina said. In fact, a cut of 25 basis points to 3.6 per cent should have happened already, Ms Mousina said. Mortgage holders will be hoping lighting doesn't strike twice after the central bank's board voted in a 6-3 decision to leave rates on hold in July, despite markets pricing in a near-certain chance of a cut. The majority of economists also expect a cut this time around, including 31 out of 34 experts surveyed by comparison website Finder. But with markets predicting another two cuts following this one, RBA governor Michele Bullock is likely to try to pare back expectations in her post-meeting communications after the meeting wraps up on Tuesday. "We think that the RBA will still sound cautious on giving too much forward guidance and remain of the view that interest rates do not need to be aggressively cut for now, given their concern that upside inflation risks may occur again in Australia," Ms Mousina said. Another potential concern for Ms Bullock could be developments at the US central bank. Ms Mousina said we could be seeing the "Trumpification" of the Federal Reserve after the US president's appointment of ally Stephen Miran to replace departing governor Adriana Kugler. Mr Miran's appointment heralds a more dovish Fed board, which could mean lower US interest rates if Donald Trump gets his way. "Stephen Miran's appointment to the Federal Reserve board will likely increase pressure for deeper rate cuts while broadening concerns around Fed independence," JP Morgan chief economist Bruce Kasman said. While the RBA has been more focused on domestic developments in recent months, the Fed's outsized influence on global borrowing costs can set the tone for International monetary policy. When the Fed cuts, central banks around the world have tended to follow. And a dovish turn could have consequences for the Australian dollar, investor expectations and the broader economy.
Indian Express
6 days ago
- Business
- Indian Express
Donald Trump eyes new Fed Chair as he calls for Jerome Powell's ouster
US President Donald Trump appears ready to push Federal Reserve Chair Jerome Powell out. The President, who has for months attacked the Federal Reserve Chair as 'stubborn,' signalled Tuesday that he is weighing a list of candidates to succeed Powell and may act soon. 'I didn't say I'm making a decision right now,' he told CNBC. But for anyone watching, the intent was clear: Trump wants Powell gone. Trump has long accused the central bank chief of refusing to lower interest rates in the face of economic slowdown and his own trade war. On Friday, after another disappointing jobs report, he went further, calling on the Fed's board of governors to override Powell. 'THE BOARD SHOULD ASSUME CONTROL,' Trump wrote on Truth Social, 'AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!' The President's frustrations have coincided with a string of economic data that has not gone his way. Friday's nonfarm payrolls report showed just 73,000 jobs added in July – far below expectations – and included downward revisions of 258,000 for the previous two months. Hours later, Trump fired Erika McEntarfer, the commissioner of the Bureau of Labor Statistics, blaming her for 'the biggest miscalculations in over 50 years.' The move stunned economists. 'The risk of politicising the data collection process should not be overlooked,' warned Michael Feroli, JPMorgan Chase's chief US economist. 'Having a flawed instrument panel can be just as dangerous as having an obediently partisan pilot.' But if Trump is steering, he's also reshaping the cockpit. The resignation of Federal Reserve Governor Adriana Kugler, announced Friday, gives Trump a new opening. Kugler's term was set to run until January, but her early departure, combined with McEntarfer's firing, leaves Trump with two powerful vacancies to fill. And he's made it clear he knows the stakes. The Kugler vacancy, wrote Krishna Guha of Evercore ISI, 'jump-starts the Trumpification of the Fed by handing President Trump a vacancy into which he can place a potential or even a clearly designated successor to Powell as Fed chair.' Trump has hinted as much himself—saying his nominee for Kugler's post could well be the next chair when Powell's term expires in May 2026. He's also floated the possibility of pushing Powell out sooner, a move that would draw legal and political fire but has not been ruled out. Trump also ruled out Treasury Secretary Scott Bessent—'He's doing a great job, and he wants to do what he's doing'—but said he is evaluating 'Kevin and Kevin,' referring to former Fed Governor Kevin Warsh and National Economic Council Director Kevin Hassett. 'Both Kevins are very good,' Trump said. Two sitting Fed governors, Christopher Waller and Michelle Bowman, have already broken with Powell on interest rate policy. After Friday's meeting, both issued statements pushing for rate cuts and arguing that Trump's tariffs had only a one-time effect on inflation. Yet the Fed has held interest rates steady through 2025, and Powell has so far resisted Trump's repeated public pressure. The next chance for a rate cut comes in September.
