The US economy is slowing, according to a monthly index released Monday, increasing the likelihood that policymakers will cut interest rates next month. The Chicago Fed's National Activity Index fell slightly to minus 0.19 in July from a downwardly revised minus 0.18 in June. A reading below zero indicates slower growth than the long-term average. Employment indicators remained negative on the index, a fresh sign of fragility in the US labor market. This weakness is one of the main reasons for a rate cut at the Fed's policy meeting next month. Central bank Chairman Jerome Powell last week...
U.S. President Donald Trump is laying the groundwork to blame the Federal Reserve under Chair Jerome Powell for any economic weakness resulting from his trade tariffs, the Wall Street Journal's Nick Timiraos wrote on Monday. Trump is signaling that he will blame the Fed if the central bank does not concede to his demands for interest rate cuts soon, Timiraos said, in a process that could also delegitimize the central bank's independence. Timiraos' comments come after Trump engaged in a social media tirade against the Fed and Chair Powell, calling him a "major loser" and "Mr. Too Late" amid...
Exports from Indonesia unexpectedly grew by 3.16% year-on-year to a three-month high of USD 23.25 billion in March 2025, beating forecasts of a 3.4% fall, despite easing from a marginally revised 13.86% jump in February. This marked the 12th straight month of export growth, though it was the softest pace since last July as non-oil and gas exports rose by 2.56% to USD 21.80 billion, slowing sharply from a 15.40% surge in February. Sales grew to the U.S. (20.06%), China (9.51%), ASEAN (6.82%), and the EU (21.52%). Among commodities, sales increased mainly for animal/vegetable fats and oils...
U.S. President Donald Trump again called for Powell to cut rates.Economic activity might ‘fall off' in summer, Chicago Fed President Austan Goolsbee said.The Trump administration could overhaul the U.S. State Department.Fees on Chinese-built vessels will be imposed by the Trump administration.Ukraine said it had signed the outline of a mineral deal with the U.S.Tesla and Alphabet are announcing first-quarter earnings this week.An independent central bank is seen by most (including this newsletter) as the bedrock of a functional economy. Officials steer the economy by calibrating the...
China's ambassador to the United States, Xie Feng, has urged Washington to seek common ground with Beijing and pursue peaceful coexistence while warning that China stood ready to retaliate in the escalating trade war. Speaking at a public event in Washington on Saturday, details of which were posted on the Chinese embassy's web site, Xie said tariffs would devastate the global economy and drew a parallel between the Great Depression and tariffs imposed by the U.S. in 1930. Referring to concepts in traditional Chinese medicine like the need to balance the opposing forces of yin and yang,...
President Donald Trump said he was reluctant to continue ratcheting up tariffs on China because it could stall trade between the two countries, and insisted Beijing had repeatedly reached out in a bid to broker a deal. Trump, speaking to reporters in the Oval Office on Thursday, said officials he believed represented the Chinese leader Xi Jinping had sought to start talks. But he repeatedly sidestepped direct questions about whether he and Xi had been in direct contact. "I have a very good relationship with President Xi, and I think it's going to continue. And I would say they have reached...
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...