Latest news with #USFederalReserve
Time of India
13 hours ago
- Business
- Time of India
Tariff pressures still loom over summer outlook after softening US inflation in April
The US Federal Reserve's preferred inflation gauge eased more than expected in April, offering a temporary reprieve from price pressures even as new tariffs introduced by President Donald Trump began to take effect. According to data released Friday by the Commerce Department, the personal consumption expenditures (PCE) price index rose 2.1% year-over-year, down from a revised 2.3% in March. The figure came in slightly below the 2.2% median forecast from economists surveyed by Dow Jones Newswires and The Wall Street Journal, keeping overall inflation just above the Fed's 2% long-term target, AFP reported. On a monthly basis, headline inflation edged up 0.1%, mirroring the increase in the 'core' PCE index, which excludes volatile food and energy prices. Core inflation rose 2.5% from a year earlier, just under the 2.6% economists had projected. 'We're seeing evidence that we were on track for a perfect landing when it comes to inflation,' said Gregory Daco, chief economist at EY, speaking to AFP. 'But that unfortunately came before the tariff storm that is likely to lead to an inflationary acceleration over the course of the summer.' The April price gains were largely driven by a 0.5% increase in prices for durable goods and energy, which was partially offset by a 0.3% decline in food prices. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo Trump's newly imposed tariffs, dubbed 'liberation day' duties, took effect on April 2, with a 10% levy applied to most countries and even higher rates imposed on key trading partners shortly thereafter. Though some of the measures have since been paused, legal battles are ongoing. This week, the US Court of International Trade ruled Trump exceeded his legal authority, only for a federal judge to grant a temporary stay, allowing the tariffs to remain in place during the appeal. While it's too early for these tariffs to be fully reflected in the data, Daco noted early signs of upward pressure, pointing out that furniture prices began climbing in April following the new duties. 'That bodes poorly for the inflation outlook over the coming months,' he warned, suggesting that rising prices could begin to erode consumer spending. The Trump administration maintains that the tariffs will help reduce trade imbalances and won't harm the broader economy, though many economists expect higher consumer prices and a slowdown in growth — at least in the short term. In more positive economic news, personal income rose 0.8% in April, significantly ahead of the 0.3% forecast. Additionally, the personal saving rate jumped to 4.9% from a revised 4.3% in March, indicating that consumers are holding onto more of their disposable income. For the Federal Reserve, Friday's data may offer temporary relief. The central bank has kept interest rates steady at a range of 4.25% to 4.50%, and officials continue to deliberate over the timing of future rate cuts. Still, the outlook remains uncertain. Jeffrey Roach, chief economist at LPL Financial, cautioned that the current cooling in inflation may not last. 'Inflation will likely reaccelerate for the remainder of 2025 as both supply and demand pressures will push annual inflation rates higher,' he wrote in a note shared with AFP. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News18
a day ago
- Business
- News18
Gold Prices Fall For 5th Day; Check Yellow Metal's Rates In Your City On May 30
Last Updated: Gold Rates Today: Gold prices in India fell for the fifth day. In Mumbai, 22-carat gold is Rs 89,340 per 10 grams, and 24-carat gold is Rs 97,030. Silver dropped by Rs 100 per kg. Gold Rates Today In India, May 30: Gold prices on Friday remained under pressure for the fifth day in a row. In Mumbai, the price of gold stood at Rs 89,340 per 10 grams for 22-carat and Rs 97,030 per 10 grams for 24-carat. The price of silver fell by Rs 100 to Rs 99,800 per kg in Mumbai. On the MCX, gold was trading lower by 0.76 per cent to trade at Rs 95,722 per 10 grams. Silver was also trading down by 0.75 per cent to trade at Rs 97,091 per kg in the morning trade. Gold prices on Friday fell amid a slight uptick in dollar, while investors awaited a key US inflation report that may provide further insight into the US Federal Reserve's policy trajectory, according to traders. Known for its unmatched purity, 24-carat gold continues to attract buyers seeking premium quality. Meanwhile, 22-carat gold, prized for its durability and timeless charm, remains a favourite among jewellery enthusiasts and investors alike, striking a balance between elegance and practicality. First Published: May 30, 2025, 09:30 IST
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First Post
a day 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
See - Sada Elbalad
a day ago
- Business
- See - Sada Elbalad
Gold Trims Losses Locally ,Globally Amid Escalating Economic Uncertainty
Waleed Farouk Gold prices trimmed their losses in the local market during trading on Thursday, supported by rising global ounce prices, amid escalating economic uncertainty gripping international markets. The price of gold in the local market rose to EGP 4,610 per gram, after falling this morning to EGP 4,585, affected by a previous drop in global prices. In global markets, the ounce managed to recover a significant portion of its losses, rising to $3,300 after previously falling to $3,245, amid ongoing economic turmoil that is pushing investors toward gold as a safe haven. The price of 24-karat gold reached EGP 5,269 per gram, while the price of 18-karat gold reached EGP 3,951 per gram. The price of 14-karat gold reached approximately EGP 3,074 per gram, and the price of the gold pound reached approximately EGP 36,880 per gram. Gold prices in local markets fell by EGP 5 during trading on Wednesday. The price of a gram of 21-karat gold opened at EGP 4,620 and closed at EGP 4,615. Meanwhile, an ounce fell by $27, opening at $3,305 and closing at $3,287. Gold prices witnessed a significant recovery during trading on Thursday, after paring most of their previous losses, supported by the decline of the US dollar and growing uncertainty about the future of the global economy amid escalating tensions related to US tariff policies. This recovery was attributed to a federal court ruling in New York halting the implementation of US President Donald Trump's tariff policy, believing that the decision contributed to undermining the strength of the dollar, thus supporting demand for gold as a safe haven. The court ruled that the Trump administration exceeded its constitutional powers under the International Emergency Economic Powers Act (IEEPA) when imposing tariffs on several trading partners and ordered the tariffs to be rescinded within ten days, prompting the White House to file an urgent appeal. These developments come at a time of growing concern within economic circles about the impact of tariffs on global growth, amid warnings of an impending recession. Analysts at Invesco warned that the confusion caused by trade policy uncertainty could push US companies to freeze investment plans and postpone hiring decisions and wage increases, which could negatively impact corporate profits and domestic consumption. Meanwhile, the minutes of the US Federal Reserve's May 6-7 meeting revealed that bank officials face increasing challenges, most notably persistent inflationary pressures and a declining labor market, forcing policymakers to make difficult decisions in the coming period. The minutes indicated that inflation may persist longer than expected, coinciding with declining growth and employment prospects, amid the impact of new tariff policies. Although the Federal Reserve decided at its last meeting to hold interest rates within a range of 4.25% to 4.5%, Chairman Jerome Powell stressed the need to be cautious in taking further steps until the full economic impact of recent government policies becomes clear. Investors are awaiting tomorrow's release of the Personal Consumption Expenditures (PCE) price index for April, the Fed's preferred measure of inflation. Expectations indicate a moderate annual growth rate of 2.5%, compared to 2.6% in March, but the impact of the data may be limited amid escalating economic and political tensions. In this volatile context, gold remains the biggest gainer so far, driven by its status as a safe-haven asset and the continued uncertainty in global markets. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks
Mint
2 days ago
- Business
- Mint
US news: Jobless claims rise, layoffs remain low, economy contracts 0.2%
The US Labor Department said on Thursday applications for jobless benefits rose last week but workers broadly remain secure in their jobs despite economic uncertainty. Official data showed jobless benefits applications surged by 14,000 to 240,000 in the week ended May 24. For the week of May 17, the total number of Americans receiving unemployment benefits rose by 26,000 to 1.92 million. In April, the US employers added a strong 177,000 jobs and the unemployment rate stood at a healthy 4.2%. Separately, the government said on Thursday that the US economy contracted 0.2% in the first quarter of 2025, a slight upgrade from its first estimate. The economic growth was slowed by a rise in imports as companies in the US tried to bring in foreign goods before Trump's massive tariffs went into effect. Weekly applications for jobless benefits are seen as representative of US layoffs and have mostly settled in a historically healthy range between 200,000 and 250,000 since Covid-19 throttled the economy in the spring of 2020, wiping out millions of jobs. The latest data reflect that the labor market remains strong, with plentiful jobs and relatively few layoffs. Concerns over economic uncertainty triggered by President Donald Trump's sweeping tariffs on imports upended a robust US labor market. However, a sense of relief swept over financial markets on Thursday after a US federal court blocked Trump's most tariffs imposed under an emergency-powers law. The Trump administration has filed appeal and the Supreme Court will certainly be called upon to decide the issue. The court order announced on Wednesday threw into doubt Trump's signature economic policy that has rattled global financial markets, frustrated trade partners and raised fears about inflation intensifying and the economy slumping. Earlier in May, the US Federal Reserve held its lending rate at 4.3% for the third straight time after cutting it three times at the end of 2024. Jerome Powell, Federal Reserve Chair, had said the potential for both higher unemployment and inflation are elevated, an unusual combination that complicates the central bank's dual mandate of controlling prices and keeping unemployment low.
