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...
Gold price tumbled below $3,350 on Tuesday amid broad US Dollar weakness, as US Federal Reserve Chair Jerome Powell pushed back against reducing borrowing costs, reiterating that the impact of tariffs on inflation remains uncertain. At the time of writing, XAU/USD trades at $3,315, down over 1.50%. Bullion prices had recovered some ground, even though Powell was hawkish at his testimony at the US House of Representatives. He said that rates are modestly restrictive, acknowledging that if inflation pressures are contained, the central bank could cut rates. Aside from this, the de-escalation...
The US Dollar Index (DXY) is trading lower on Tuesday following news of a ceasefire agreement between Israel and Iran, which has alleviated demand for the US Dollar (USD). At the time of writing, the DXY is trading near 97.65, just above the June low of 97.61. The Federal Reserve (Fed) Chair Jerome Powell delivered hawkish remarks at his testimony to Congress, stating that the Fed "is not in a hurry to cut rates". Although he reaffirmed his data-dependent stance, reducing expectations of a July rate cut, markets remained focused on easing geopolitical tensions. Market attention quickly...
Gold prices fell on Tuesday as investors fled from safe-haven assets and continued to monitor remarks from Jerome Powell, Chair of the Federal Reserve (Fed). As Fed Powell began his two-day semi-annual testimony before Congress, his prepared remarks stated that "the Fed's obligation is to prevent a one-time increase in price-level from becoming an ongoing inflation problem by keeping inflation expectations well-anchored." Although these comments are supportive of potential rate cuts in the last quarter of the year, easing geopolitical risks appear to be the dominant driver of current price...
A Bloomberg gauge of the dollar dropped amid a fragile ceasefire between Iran and Israel. The US currency trimmed losses after Federal Reserve Chair Jerome Powell said that the central bank is in no rush to lower borrowing costs. The Bloomberg Dollar Spot Index falls 0.4% and trades off day's low; still heads for its biggest daily decline since June 12 as options sentiment sours on US currency. Powell in prepared remarks to Congress ahead of testimony later Tuesday: "For the time being, we are well positioned to wait to learn more about the...
Oil tumbled nearly 4%, global shares surged and the dollar dropped on Tuesday as markets took heart from a ceasefire between Israel and Iran and shrugged off what U.S. President Donald Trump said were violations by both sides. Brent futures had already slid 7% on Monday and U.S. shares jumped after Iran made only a token retaliation against a U.S. base to an attack over the weekend, and signalled it was done for now. With the immediate threat to the vital Strait of Hormuz shipping lane seemingly over, the Brent benchmark touched its lowest since June 11 and was last at $68.81 a barrel,...
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...