Goldman Sachs says it now expects the Federal Reserve to slash interest rates earlier than initially anticipated, citing relatively mild effects from U.S. President Donald Trump's aggressive tariff agenda. Writing in a note to clients, the analysts led by Jan Hatzius said they now predict that the central bank will cut borrowing costs by 25 basis points in September, prior to an earlier forecast that the next reduction would come in December. "While it is far from clear, we think the odds of a cut in September are somewhat above 50% because we see several routes to get there --...
Data from the US Bureau of Labor Statistics showed that the number of job openings in May rose sharply to 7.77 million, well above the market estimate of 7.3 million. This indicates that the US labor market is still quite strong. The job opening rate rose to 4.6% from 4.4% previously. Meanwhile, the number of people who resigned from their jobs also increased to 3.29 million, indicating workers' confidence in new opportunities. On the other hand, the number of layoffs actually decreased to 1.6 million, indicating that the layoff rate is getting lower. This data could reduce pressure on the...
The ISM Manufacturing PMI edged up to 49 in June 2025 from 48.5 in May, compared to forecasts of 48.8, signalling economic activity in the manufacturing sector contracted for the fourth consecutive month. However, the rate of contraction slowed, amid a rebound in production (50.3 vs 45.4) and improvements in inventories (49.2 vs 46.7). On the other hand, new orders (46.4 vs 47.6), employment (45 vs 46.8) and backlog of orders (44.3 vs 47.1) contracted at a faster pace. Also, inflationary pressures increased slightly (69.7 vs 69.4) and tariffs-induced prices growth accelerated. Meanwhile, the...
Donald Trump's $3.3 trillion tax-cutting and spending bill passed the Senate on Tuesday after Republican leaders worked hard to persuade opponents to support the legislation and hand the president a political victory. Senators voted 51-50 to pass the bill. Vice President J.D. Vance cast the tie-breaking vote. The package, which now goes to the House, combines $4.5 trillion in tax cuts with $1.2 trillion in spending cuts. The package — informally known as the "One Big Beautiful Bill" — encompasses the president's entire legislative agenda in one package. Trump has personally lobbied...
Treasury Secretary Scott Bessent said he expects the Federal Reserve to cut interest rates by September, and that President Donald Trump's trade tariffs were unlikely to stoke inflation as feared by the central bank. Speaking on Fox News' Ingraham Angle, Bessent said it was "bewildering" to him that the Fed had not cut interest rates in the face of President Donald Trump's trade tariffs, especially given that the central bank lowered its growth forecast. "I think that the criteria is that tariffs were not inflationary. If they're going to follow that criteria, I think that they could do it...