Stephen Miran, a Federal Reserve governor whose term ends at the end of January, said Thursday that he is looking for 150 basis points of interest-rate cuts this year to boost the U.S. labor market. Miran told Bloomberg Television's Surveillance program that Fed officials had room to further reduce rates given his view that underlying inflation was likely running at 2.3%. "I'm looking for about a point and a half of cuts. A lot of that is driven by my view of inflation," Miran said. "Underlying inflation is running within noise of our target, and that's a good indication of where overall...
The US dollar index held above 98 on Tuesday, hovering near a three-week high as investors awaited the June consumer inflation report that could provide clues on how the Trump administration's tariffs have been affecting prices. Federal Reserve Chair Jerome Powell recently indicated that inflation is expected to rise over the summer due to tariff pressures, reinforcing expectations that the Fed may delay interest rate cuts until later this year. Meanwhile, concerns over central bank independence resurfaced as President Donald Trump renewed criticism of Powell, arguing that interest rates...
Gold edges higher in the early Asian session. Key development is today's release of U.S. CPI, XS.com's Rania Gule says in an email. "Inflation remains the core variable steering the Fed's monetary policy, and therefore directly impacts market sentiment toward safe-haven or risk-on assets," the senior market analyst says. Should inflation be hotter than expected, expectations of a Fed rate cut in September may be scaled back, strengthening USD and putting downward pressure on gold. On the other hand, weak inflation readings would boost the case for Fed rate cuts and be strongly supportive of...
Oil held a drop after slumping by more than 2% on Monday as US President Donald Trump's latest plan to pressure Russia refrained from immediate new measures aimed at hindering Moscow's energy exports. US benchmark West Texas Intermediate traded near $67 a barrel, while Brent settled near $69 in the previous session. Trump boosted military support for Ukraine to resist Moscow's invasion, and threatened to impose 100% tariffs if the hostilities did not end with a deal in 50 days. The planned action effectively represents secondary sanctions on countries buying oil from Russia, according...
The EUR/USD remains pressured during the North American session, below the 1.1700 figure as the Dollar got boosted by Trump unveiling new tariff letters on two of its largest trade partners, increasing appetite for haven assets. At the time of writing, the pair trades at 1.1667, down 0.15%. US President Donald Trump revealed levies of 30% on the European Union (EU) and Mexico last weekend. Initially, investors' sentiment deteriorated, but traders seem to be fading from Trump's decision, amid speculation that Washington could backpedal on trade decisions. Analysts cited by Reuters revealed...
Silver retreated from a nearly 14-year high as the dollar pushed higher after US President Donald Trump escalated trade tensions on the European Union and Mexico, the world's top producer of the white metal. Spot silver slipped as much as 0.8% as the greenback advanced during US trading hours. The precious metal is priced in US currency, so the strength in the dollar makes it less attractive for foreign investors. Trump unleashed tariff threats this weekend, declaring a 30% rate for Mexico and the EU, and informing key trading partners of new rates that will kick in on Aug. 1 if...
Bank of Japan (BOJ) Governor Kazuo Ueda stated that achieving 2% inflation is getting closer, although real inflation remains low. Ueda emphasized that the BOJ will continue to raise interest rates...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...