Latest news with #USFederalReserve
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First Post
2 hours ago
- Business
- First Post
White House mulls inspection of Federal Reserve HQ as Trump vs Powell feud intensifies
The White House budget director, Russell Vought, told reporters that the administration wanted to have an on-site inspection of the Fed's troubled $2.5bn building renovations amid a feud between US President Donald Trump and Fed Chair Jerome Powell read more US President Donald Trump announces Jerome Powell as his nominee to become chairman of the US Federal Reserve in the Rose Garden of the White House in Washington, US, November 2, 2017. File Image/Reuters As the feud between US President Donald Trump and Federal Reserve Chair Jerome Powell intensifies, reports are emerging that the White House is pushing for an inspection of the US Federal Reserve headquarters in Washington, DC. The move is coming at a time when Trump has suggested that the American central bank has mismanaged funds for building renovations. Ever since coming back to the White House, Trump has been pressuring Powell to quit, demanding that he and other officials lower the interest rates. Meanwhile, Powell has argued that lowering the rates prematurely could increase inflation since Trump tariffs have already contributed significantly to raising the prices of goods. STORY CONTINUES BELOW THIS AD In response to the Fed Chair's resistance, Trump has threatened to fire Powell multiple times, with Powell stating that he will serve the post until his term ends. On Friday, Trump went on to float the idea of firing Powell to House Republicans. 'I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud," the president said at the dinner with Republican senators. Why is the White House interested in searching the Federal Reserve headquarters? On Thursday, the White House budget director, Russell Vought, told reporters that the administration wanted to have an on-site inspection of the Fed's troubled $2.5bn building renovations. 'I think the president was pretty clear yesterday: he's unlikely to fire the chairman, but he has substantial concerns about how he's managed the Fed,' Vought averred. However, firing the Federal Reserve Chair would not be an easy task. The Supreme Court in the spring went out of its way to say that, while Trump can fire certain officials, like those on national labour boards, the Fed is different. 'The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,' the court said in May. If Trump went ahead and fired Powell, he might have to undergo a complicated battle with the Supreme Court. Meanwhile, Wall Street is also not taking Trump's ambition to fire Powell very well. 'The independence of the Fed is absolutely critical,' the JPMorgan Chase CEO, Jamie Dimon, said on Tuesday. 'Not just for the current Fed chairman, who I respect, but for the next Fed chairman.' It is pertinent to note that Powell's term is set to end in May 2026, but Trump appears to be hopeful that recent renovations at the Fed make Powell an easier target. According to The Guardian, renovations were initially slated to cost $1.9bn after it was budgeted in 2019, but costs have risen to $2.5bn. STORY CONTINUES BELOW THIS AD The Fed argued that the renovations cover two buildings that have 'not been comprehensively renovated since their construction in the 1930s'. On Wednesday, Trump said that 'there may be fraud involved with the $2.5bn'. Trump also said that Powell was a ' terrible Fed chair' and that he 'was surprised he was appointed'. Interestingly, it was Trump who appointed Powell to the job in 2018. Former US President Joe Biden eventually extended his term in 2022.
Business Recorder
7 hours ago
- Business
- Business Recorder
Gold drifts higher; platinum at highest in over a decade
NEW YORK: Gold prices firmed on Friday on a weaker dollar and persistent geopolitical tensions, though easing concerns about the US Federal Reserve's independence, and strong US data capped gains. Spot gold was up 0.4% at $3,350.87 per ounce, as of 1013 GMT, after falling 1.1% in the previous session. The bullion has receded 0.1% so far this week. US gold futures rose 0.3% to $3,356.70. The dollar was down 0.4% for the day, though headed for a second straight weekly rise. A weaker dollar tends to make gold cheaper for buyers holding other currencies. The European Union agreed to an 18th package of sanctions against Russia over its war in Ukraine, including measures aimed at dealing further blows to its oil and energy industry. 'Gold is rising on the softer US dollar, yet remains hemmed in by this week's US data releases which buffered the notion that the world's largest economy remains resilient,' said Han Tan, chief market analyst at 'New EU sanctions on Russia are a reminder to market participants that geopolitical risks remain evident on the global stag.' Earlier in the week, a source told Reuters that US President Donald Trump was open to firing Fed Chair Powell. Trump later said he doesn't plan to sack Powell but renewed his criticism over the Fed's interest rate policy. Meanwhile, US retail sales in June exceeded expectations, while initial jobless claims too were better. 'In precious metals, the carnival has moved on from safe-haven gold to silver, platinum and palladium as pro-growth, industrial alternatives,' said Adrian Ash, head of research at online marketplace BullionVault. Spot platinum rose 0.3% to $1,461.77 per ounce, its highest since August 2014. Palladium climbed 4% to $1,329.88, its highest since August 2023. Silver was up 0.5% at $38.31.
Business Recorder
7 hours ago
- Business
- Business Recorder
Crude oil steadies
NEW YORK: Crude oil futures were little changed on Friday on mixed US economic and tariff news and worries about oil supplies following the European Union's latest sanctions against Russia for its war in Ukraine. Brent crude futures fell 24 cents, or 0.3%, to settle at $69.28 a barrel, while US West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.3%, to end at $67.34. That put both crude benchmarks down about 2% for the week. In the United States, single-family homebuilding dropped to an 11-month low in June as high mortgage rates and economic uncertainty hampered home purchases, suggesting residential investment contracted again in the second quarter. In another report, however, US consumer sentiment improved in July, while inflation expectations continued to decline. Lower inflation should make it easier for the US Federal Reserve to reduce interest rates, which could cut consumers' borrowing costs and boost economic growth and oil demand. Separately, US President Donald Trump is pushing for a minimum tariff of 15% to 20% in any deal with the European Union, the Financial Times reported on Friday, adding that the administration is now looking at a reciprocal tariff rate that exceeds 10%, even if a deal is reached. 'Currently envisioned reciprocal tariffs, coupled with announced sectoral levies, could push the US effective tariff rate above 25%, surpassing 1930s peaks. In coming months, the tariffs should increasingly be manifest in inflation,' analysts at US bank Citigroup's Citi Research said in a note. Rising inflation can raise prices for consumers and weaken economic growth and oil demand.
Business Times
a day ago
- Business
- Business Times
Oil steadies as mixed US economic and tariff news offset new Russia sanctions
[NEW YORK] Crude oil futures were little changed on Friday on mixed US economic and tariff news and worries about oil supplies following the European Union's latest sanctions against Russia for its war in Ukraine. Brent crude futures fell 24 cents, or 0.3 per cent, to settle at US$69.28 a barrel, while US West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.3 per cent, to end at US$67.34. That put both crude benchmarks down about 2 per cent for the week. In the United States, single-family homebuilding dropped to an 11-month low in June as high mortgage rates and economic uncertainty hampered home purchases, suggesting residential investment contracted again in the second quarter. In another report, however, US consumer sentiment improved in July, while inflation expectations continued to decline. Lower inflation should make it easier for the US Federal Reserve to reduce interest rates, which could cut consumers' borrowing costs and boost economic growth and oil demand. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Separately, US President Donald Trump is pushing for a minimum tariff of 15 per cent to 20 per cent in any deal with the European Union, the Financial Times reported on Friday, adding that the administration is now looking at a reciprocal tariff rate that exceeds 10 per cent, even if a deal is reached. 'Currently envisioned reciprocal tariffs, coupled with announced sectoral levies, could push the U.S. effective tariff rate above 25 per cent, surpassing 1930s peaks ... In coming months, the tariffs should increasingly be manifest in inflation,' analysts at US bank Citigroup's Citi Research said in a note. Rising inflation can raise prices for consumers and weaken economic growth and oil demand. EU sanctions In Europe, the EU reached an agreement on an 18th sanctions package against Russia over its war in Ukraine, which includes measures aimed at dealing further blows to Russia's oil and energy industries. 'New sanctions on Russian oil from the US and Europe this week were met by a muted market reaction,' analysts at Capital Economics said in a note. 'This is a reflection of investors doubting President Trump will follow through with his threats, and a belief that new European sanctions will be no more effective than previous attempts.' The EU will also no longer import any petroleum products made from Russian crude, though the ban will not apply to imports from Norway, Britain, the US, Canada and Switzerland, EU diplomats said. EU foreign policy chief Kaja Kallas also said on X that the EU has designated the largest Rosneft oil refinery in India as part of the measures. India is the biggest importer of Russian crude while Turkey is the third-biggest, Kpler data shows. 'This shows the market fears the loss of diesel supply into Europe, as India had been a source of barrels,' said Rystad Energy's vice-president of oil markets, Janiv Shah. In other news, US oil major Chevron closed its US$55 billion acquisition of US energy firm Hess on Friday after winning a landmark legal battle against larger US oil major rival Exxon Mobil to gain access to the largest oil discovery in decades off Guyana. REUTERS
Gulf Today
2 days ago
- Business
- Gulf Today
Gold set for weekly fall; platinum hits highest
Gold prices gained on Friday, but were on track for a weekly decline on easing concerns about the US Federal Reserve's independence and strong US data, while platinum rose to a near 11-year high. Spot gold was up 0.3% at $3,349.49 per ounce, as of 0834 GMT, after falling 1.1% in the previous session. The bullion has declined 0.2% so far this week. US gold futures eased 0.3% to $3,354.70. The dollar is down 0.4% for the day, but is headed for a second straight weekly rise. A stronger dollar tends to make gold expensive for buyers holding other currencies. Earlier in the week, a source told Reuters US President Donald Trump was open to firing Fed Chair Powell, but Trump later said he doesn't plan to sack him even as he renewed his criticism over interest rate policy. Meanwhile, US, data showed that retail sales rose more than expected in June, while initial jobless claims were better than expected. 'Market participants remain concerned about the independence of the Fed. For now, those risks have declined, and US economic data has remained solid, capping the upside for gold,' said UBS commodity analyst Giovanni Staunovo. 'But at the same time, Trump wants to see the Fed cutting rates aggressively... This is putting a floor under the market.' Bullion is viewed as a safe-haven asset during times of uncertainty and performs well in a low-interest rate environment. Reuters
