Investors cheered Federal Reserve Chair Jerome Powell's Jackson Hole address, which gave a green light to buy risky assets on the hope the central bank is ready to cut rates, but took his dovish message with a note of caution as they see a risk of stagflation ahead and worry markets are over-optimistic. In his final address as Fed chair at the Jackson Hole, Wyoming, economic symposium, Powell hinted at a September interest rate cut but stopped short of committing, striking a careful balance between mounting job-market risks and lingering inflation worries. The speech on Friday came amid...
Federal Reserve Bank of Cleveland President Beth Hammack noted during an interview with Axios that the evolving policies of the U.S. government continue to make it increasingly difficult for policymakers to manage the economy. If not addressed, Hammack sees a stagflation scenario, in which low growth is accompanied by high inflation, as increasing. Key highlights Extraordinary uncertainty is weighing on economic activity. Upcoming policies could offset the effects of trade policy. Hammack sees a stagflation outcome as a likely scenario. I don't want to overreact to trade. White House...
The wave of new U.S. tariffs has severely dampened the mood among exporters and 42% of companies now expect their export revenues to decline markedly, according to a global survey by Allianz Trade published on Tuesday. The credit insurer surveyed 4,500 exporters in Germany, France, Italy, Spain, Poland, Britain, the United States, Singapore and China about global trade in March and April, before and after the tariffs spiral on April 2. Before Donald Trump's 'Liberation Day', when the president announced new tariffs against almost all trading partners, only 5% of companies had expected...
Indonesia's government sees economic growth reaching at least 5.2% next year as it continues to focus on improving food production, energy security and people's wellbeing, its finance minister told parliament on Tuesday. Finance Minister Sri Mulyani Indrawati said economic growth in 2026 would be between 5.2% and 5.8% next year with the bottom end of the range the same as 2025's growth target. "We will reach the target in 2026 by maintaining people's purchasing power... development of natural resources downstream industry and improving the investment climate, as well as human resources,"...
China cut benchmark lending rates for the first time since October on Tuesday, while major state banks lowered deposit rates as authorities work to ease monetary policy to help buffer the economy from the impact of the Sino-U.S. trade war. The widely expected rate cuts are aimed at stimulating consumption and loan growth as the world's No. 2 economy softens, while still protecting commercial lenders' shrinking profit margins. Still, the size of the rate reductions was mild and reflected the incremental pace of monetary easing in recent years and what analysts interpreted as some wariness...
Ministerial level trade talks between Japan and the U.S. are set to take place later this week– marking the third round of high-level talks between the nations, Japan's Kyodo News agency reported on Tuesday. Kyodo reported that Ryosei Akazawa, Japan's top trade negotiator and minister of economic revitalization, will fly to Washington by Friday to engage in a third round of high-level talks. Kyodo cited comments from a U.S. official. Separately, Akazawa said in a press conference on Tuesday that working level talks took place between Washington and Tokyo on Monday, and that high-level...
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
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...