Latest news with #tariffpolicy
BBC News
3 days ago
- Business
- BBC News
Business Matters Trump, tariffs, and legal troubles
After US President Donald Trump's tariff policy got a last minute reprieve in the federal courts, we unpick the latest twist in American trade policy. Meanwhile, we hear from an international student at Harvard University caught up in the institution's legal battle with the Whitehouse. Elsewhere, we can reveal how western countries are helping fund Russia's full-scale invasion of Ukraine. And Devina Gupta speaks to the attorney at the centre of the 'largest settlement of a price-fixing case in Canadian history' that's worth $500-million. Global business news, with live guests and contributions from Asia and the USA.
Bloomberg
5 days ago
- Business
- Bloomberg
Nagel Says Tariff-Driven Frontloading Helped Boost Germany at Start of Year
The upgrade of Germany's first-quarter output numbers is primarily due to businesses and exporters attempting to get ahead of expected US tariffs, according to Bundesbank President Joachim Nagel. 'We had a stronger-than-expected first quarter, with growth of 0.4%,' he said in Mannheim on Tuesday. 'This was more than we originally expected a few weeks ago, because there are, of course, many cautionary effects connected to tariff policy. We therefore expect the economy to weaken over the rest of the year, in line with tariff policy.'
Times
23-05-2025
- Business
- Times
Consumer confidence up as fears of worldwide trade war recede
Consumers are more upbeat about their finances and the state of the economy this month after a de-escalation in global trade wars. A monthly survey of household sentiment, compiled by GfK, the market research company, gained three points in May, partially reversing the drop reported last month at the height of uncertainty about US tariff policy. The index hit minus 20 — a two-month high — and all five sub-components of the survey, which spoke to more than 2,000 households, rose this month. Consumers reported the biggest improvement in their personal financial situation over the next 12 months, with the index gaining five points into positive territory of two. There were also gains in sentiment about the prospects for the economy over the next year.
Reuters
22-05-2025
- Business
- Reuters
Fed's Waller sees path to rate cuts later this year, Fox Business reports
NEW YORK, May 22 (Reuters) - U.S. Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to rate cuts later this year, in comments that observed market pricing levels show investors are worried current Republican budget plans are not doing enough to deal with the deficit. Waller, who was interviewed on Fox Business's television channel, said the key to the outlook depends on where the Trump administration's tariff policy settles out. If those tariffs hit the lower end of the range relative to some of the more draconian levels seen as the start of President Donald Trump's global trade war, then the outlook appears solid. 'If we can get the tariffs down close to the 10% and then that's all sealed, done and delivered somewhere by July, then we're in good shape for the second half of the year, and then we're in a good position to kind of move with rate cuts through the second half of the year,' Waller said. The policymaker did not say how or when he expects the Fed to lower what is now a federal funds target rate range set between 4.25% and 4.5%. Financial markets are looking toward a modest amount of rate cutting later in the year, even as Fed officials and many in the private sector acknowledge huge uncertainty around the outlook tied to trade policy. Many of the more aggressive aspects of the tariff policy are suspended pending the success of trade deals, so there remains little clarity on how things will shake out. Economists generally believe tariffs of the sort favored by the president will drive up inflation while lowering growth and employment. Trump's retreat on tariffs thus far has caused forecasters to lower what had been high odds the economy would fall into recession. Waller, in his interview, also took on a Republican tax plan that appears likely to add significant amounts of borrowing to already massive deficits. Financial markets have wobbled as Republicans have moved forward on the legislation, as government bond yields have been rising. Higher borrowing costs add restraint to economic activity and could affect how the Fed thinks about future monetary policy choices. 'The markets are watching the fiscal policy' now being considered 'and they have some concerns about whether it's going to be reducing the deficit. I mean, we ran $2 trillion deficits the last few years. This is just not sustainable,' Waller said. 'Markets are looking for a little more fiscal discipline, they're concerned,' Waller said. As the version of the bill passed on Thursday by the House also needs to go through the Senate, Waller noted markets might demand a premium to buy government debt until it's clear government spending will moderate. Waller noted there's a general level of concern right now over U.S. assets. 'There does seem to be, you know, a risk-off on American assets across the board, not just government debt, but everything,' Waller said. 'And whether that continues in the future or not, I don't know.' Waller said that if the economy gets back 'on a good path' and inflation 'stays down,' then 'you might see a resurgent demand for American assets.' Waller also said in the interview that he continues to believe that standard economics reckons any tariff-related inflation will be a one-time shot that Fed policymakers can look through. He said a 10% tariff regime should have only a modest impact on real-world price increases and noted that he has seen nothing so far to suggest the tariffs would create persistent upward pressure on prices.
