New Zealand's Central Bank Keeps Rates on Hold as Inflation Risks Simmer
The official cash rate was held at 3.25%, which was expected by most economists.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
How does a weaker dollar impact US vacationers?
The decline in the value of the U.S. dollar this year has made Americans' vacations abroad more expensive than in recent years, which could stretch travelers' budgets more than anticipated. So far in 2025, the U.S. dollar has declined about 10% relative to a basket of popular foreign currencies, according to The Wall Street Journal's U.S. Dollar Index (DXY). The weaker dollar means that Americans' purchasing power overseas is generally lower than it was in the past few years, with vacationers facing relatively higher prices. "Welcome to inflation again," Clint Henderson, managing editor at The Points Guy, told FOX Business. "You're looking at prices being anywhere from 8% to as high as 14% higher across the board, especially in Europe, due to the weakness of the U.S. dollar." Dollar Slides To 3-Year Low On Report Trump Plans To Name Next Fed Chair Early "To put it in perspective, the U.S. dollar has been on a multiyear tear, so we've really benefited the last couple of years – it's just with the way things are now, prices are going to be slightly higher than they have been the past couple of years for Americans traveling to Europe specifically and also Asia, especially Japan," he said. Read On The Fox Business App Henderson noted that those who had already locked in prices months ago may not see the impact in that line item of their travel budget – though the dollar's decline is likely to still be felt in other aspects of travel spending. "Hopefully most folks have already locked in their hotel prices, so they're not going to be paying a lot more for hotels," he added. "But food costs, transportation costs… everything's going up in price." Trump Announces Higher Tariff Rates For More Countries In Letters Published On Social Media One bright spot for travelers' budgets can be found in relatively cheaper flights to and from vacationers' destinations, Henderson noted. "The good news is, I'm calling this the 'summer of savings' when it comes to airfare, because prices are down substantially for airfare, so hopefully any more expense you're paying when you're traveling has been sort of balanced by cheaper airfare," he explained. The dollar's recent downturn comes after it was relatively stronger than foreign currencies in the last few years. Tariffs Will Revert To April Levels If Countries Don't Make A Deal By August 1, Bessent Says David Bahnsen, managing partner and chief investment officer of the Bahnsen Group, told FOX Business that the main reason "is the fact that it had gone up 10% the year before, and in 2025 was just giving that move back." "The DXY right now is basically where it was three years ago – not higher or lower, though it spent most of the last three years higher than it is now, and it spent most of the ten years before that lower than it is now," he said. The volatility and downward trend the dollar has experienced this year stems from uncertainty over trade policy and tariffs, as markets take the higher costs into account. "The specific catalyst besides the fact that it was over-priced relative to other currencies and due for a correction is this trade and tariff volatility. Imports get more expensive with a weaker dollar even as exports get cheaper," Bahnsen article source: How does a weaker dollar impact US vacationers?
Yahoo
an hour ago
- Yahoo
Trump administration ramps up pressure on Powell as Fed holds rates steady
The Trump administration appears to be ramping up pressure on Jerome Powell to step down as Federal Reserve chair, with one federal agency issuing a statement voicing support for his departure. President Donald Trump, who nominated Powell as Fed chair in 2017, has frequently voiced dissatisfaction with the Fed's recent 'wait-and-see" approach to lowering interest rates, calling instead for rates to quickly drop from 4.25% to 4.5% to as low as 2.25%. In June, Trump called Powell a "stupid person" who has "done a poor job," adding that he's called the Fed chair "every name in the book" to try to get him to cut rates. He added, "Nothing works." Powell has also come under fire from Office of Management and Budget Director Russell Vought, who suggested Powell has 'grossly mismanaged the Fed' and misled Congress about an 'ostentatious' headquarters remodel. Powell has previously defended the project, calling some of the more extravagant descriptions 'misleading and inaccurate' during a June testimony before the Senate Banking Committee. The administration's pressure tactics appeared to continue July 11, when William Pulte, director of the Federal Housing Finance Agency and chairman of the Board of Fannie Mae and Freddie Mac, said in a statement Powell's resignation would be 'the right decision for America, and the economy will boom.' Buying a house: Fannie and Freddie may use new credit scores. Will it help you get a mortgage? Pulte referenced "reports" that Powell is 'considering resigning.' When asked for confirmation, the Fed declined to comment but directed USA TODAY to the many times Powell has said he intends to serve his term, set to end May 2026. Pulte's statement comes ahead of the central bank's July 29-30 meeting. The CME FedWatch, which tracks the likelihood of a rate cut based on futures prices, says there's a roughly 93% chance rates hold steady at 4.25% to 4.5% after the meeting. In June, the Fed held interest rates steady for its fourth straight meeting and kept its forecast for two cuts in 2025. Officials project they'll lower rates by a half percentage point this year to a range of 3.75% to 4%. While lower rates would juice the economy and help reduce federal debt interest payments, Powell has said the Fed wants to see how tariffs impact inflation before cutting rates. Trump in June said he's already looking for Powell's replacement, but he may have to wait if Powell doesn't step down voluntarily. A May Supreme Court ruling downplayed Trump's ability to fire Powell, noting that the Fed is "a uniquely structured, quasi-private entity" and unlike other independent agencies with members subject to terminations decided by the president. Contributing: Paul Davidson This article originally appeared on USA TODAY: Trump administration ramps up pressure on Fed chair Jerome Powell
Yahoo
an hour ago
- Yahoo
Director of federal agency suggests Fed Chairman Powell is considering resigning
A Trump administration official on Friday suggested that Federal Reserve Chair Jerome Powell is reportedly considering resigning. Federal Housing Finance Agency Director Bill Pulte – a vocal critic of Powell who has backed President Donald Trump's efforts to pressure the central bank into interest rate cuts – released a statement on X and the agency's website alluding to unspecified reports that Powell will resign. "I'm encouraged by reports that Jerome Powell is considering resigning. I think this will be the right decision for America, and the economy will boom," Pulte said. It's unclear where Pulte is getting the information he used for the statement and there is no other public information on the subject at this time. FOX Business reached out to the Federal Reserve regarding Pulte's statement. A Fed spokesperson declined to comment and referenced the numerous times that Powell has said he intends to serve out the remainder of his term. Trump Admin Presses Powell Over Fed's Costly Headquarters Renovation Project Read On The Fox Business App Powell's term as Fed chair ends on May 15, 2026, though his term as a member of the central bank's board of governors extends until January 31, 2028, although he hasn't indicated whether he intends to serve out that term following his chairmanship. Pulte, who was confirmed to his role by the Senate in March, has repeatedly called for Powell to resign or face investigation over the agency's handling of monetary policy and other matters on social media since taking office. In late May, Pulte posted that Powell "needs to lower interest rates" and said the "housing market would be in much better shape if Chairman Powell does this." He began calling for Powell's resignation in mid-June, after central bank policymakers declined to cut interest rates held the benchmark federal funds interest rate target steady for the fourth consecutive meeting. Since then, Pulte has posted multiple criticisms of Powell and calls for his resignation on a near-daily basis. Last week, Pulte called for Congress to investigate Powell over "his political bias, and his deceptive testimony, which is enough to be removed 'for cause.'" He added that that Powell mismanaged the Fed's headquarters renovation project and said it's "nothing short of malfeaseance and is worthy of 'for cause.'" Goldman Sachs Says Undermining Central Bank Independence Has Economic Repercussions President Trump – who appointed Powell to the role in 2017 – has publicly weighed firing Powell, though under federal law he can only be removed for cause. Pulte's criticism comes as Office of Management and Budget Director Russell Vought on Thursday sent a letter to the Fed regarding what he called an "ostentatious overhaul" of the project, saying that Powell's recent testimony on the subject "raises serious questions" about the project's compliance with design plans submitted to the National Capital Planning Commission. Trump was asked this week during a recent Cabinet meeting that was open to the press about allegations Powell lied to Congress, when he again called for Powell to step down so that he could replace him with a chair who would cut interest rates. "Well, then he should resign immediately. We should get somebody in there that's going to lower interest rates," Trump replied. "It's OK with me, I think he's terrible." Fed Chair Powell Confirms Tariff Concerns Prevented Interest Rate Cuts So Far This Year The Federal Reserve's renovation of its two main office buildings was initially estimated to cost $1.9 billion in 2019, though the estimated cost rose to nearly $2.5 billion due to "significant increases" in the cost of wood, steel, cement and other construction materials per budget documents The Wall Street Journal cited in a 2023 report on the subject. Federal law governing the Federal Reserve System gives the central bank the authority to build facilities for its use, as well as to maintain, enlarge or remodel those facilities – and also gives the Fed sole control of those buildings and the space inside. At a recent Senate Banking Committee hearing on monetary policy, Chairman Tim Scott, R-S.C., criticized the renovation project, citing the design elements that are the focus of Vought's letter, saying in his opening remarks the renovations "feel more like they belong in the Palace of Versailles than a public institution." Dollar Slides To 3-Year Low On Report Trump Plans To Name Next Fed Chair Early Powell was later asked about the project during the hearing and said the Fed "will provide a much more detailed response" and that "we do take seriously our responsibility as stewards of the public's money, and the other thing I would start with is no one wants to do a major renovation of a historic building during their term in office. Much prefer to leave that to your successors, and this is a great example why – let alone two historic buildings." "I would also say that the media reports that you accurately quoted – they're misleading and inaccurate in many, many respects," Powell said. "I would just point to there's no VIP dining room, there's no new marble – we took down the old marble, we're putting it back up, we'll have to use new marble where some of the old marble broke." "There's no special elevators, there's just old elevators that have been there. There are no new water features, there's no beehives, and there's no roof terrace gardens," Powell said. "All of the sort of inflammatory things that the media carried are either not in the current plan or just inaccurate." "Notwithstanding that, the cost overruns are what they are," Powell started to elaborate before Scott cut him off, citing the panel's five-minute rule for each senator's questioning. The Senate Banking Committee later said the Fed is organizing a staff briefing on the article source: Director of federal agency suggests Fed Chairman Powell is considering resigning Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
