BOE's Greene Says Dollar Moves Complicate Tariff Policy Response
Speaking at the Delphi Economic Forum in Greece on Saturday, Greene said the trade war unleashed by US President Donald Trump would be a 'global demand shock' and the tariffs 'will impact the economy.' But she added that 'the implications for inflation are somewhat ambiguous.'
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Yahoo
an hour ago
- Yahoo
'Crypto week' collapses as house GOP fails key vote
'Crypto week' collapses as house GOP fails key vote originally appeared on TheStreet. On July 15, the U.S. House failed to pass a procedural vote that would have advanced several crypto-focused bills. The motion was rejected in a 196 to 223 vote, with 13 Republicans, often called GOPs, joining Democrats, effectively stalling the momentum of "Crypto Week," according to CNBC. According to CNBC, a procedural vote on three bills failed to pass. If the procedural vote had passed, it would have opened up an opportunity not only for crypto legislation, but to also vote on the Defense Department funding. The failure is also going to reset House Republicans' plan to call this week "Crypto Week," which was something both lawmakers and the industry had hoped to use to push forward long-awaited regulation. Rep. Marjorie Taylor Greene, one of the GOP members who voted against the rule, expressed concern that the legislation didn't go far enough to prevent the creation of a U.S. central bank digital currency (CBDC). The dismantling of the rule could mean these bills are delayed until next week, or even longer, as Republican leaders consider a new strategy, according to CNBC. Greene who voted against the rule, expressed concern that the legislation didn't go far enough to prevent the creation of a U.S. central bank digital currency (CBDC). 'I just voted NO on the Rule for the GENIUS Act because it does not include a ban on Central Bank Digital Currency and because Speaker Johnson did not allow us to submit amendments to the GENIUS Act. Americans do not want a government-controlled Central Bank Digital Currency. Republicans have a duty to ban CBDC. Bitcoin dipped a bit following the vote. At press time, Bitcoin was trading at $116,871.99, down from its 24-hour high of $120,446.84, as per Kraken. 'Crypto week' collapses as house GOP fails key vote first appeared on TheStreet on Jul 15, 2025 This story was originally reported by TheStreet on Jul 15, 2025, where it first appeared.
Yahoo
2 hours ago
- Yahoo
Reeves's inflation shock forces Bank of England to gamble
After costly policy reversals by her boss and an unexpected shrinking of the economy, the last thing the Chancellor needed was an inflation shock. Yet that's exactly what Rachel Reeves has been handed. Figures published by the Office for National Statistics (ONS) on Wednesday show inflation accelerated to 3.6pc in June, leaving Britain with the highest rate among G7 countries, according to the latest data available. This means the Bank of England (BoE) is unlikely to help Reeves out – as investors are now less confident of a rate cut next month, though it is still likely, and hopes of action later in the year are also fading. 'Unfortunately for the BoE, things will likely get worse before they get better,' warns Zara Nokes, at JP Morgan Asset Management. Higher-for-longer interest rates will elevate the Chancellor's borrowing costs and drag on growth. It adds to the Chancellor's many woes ahead of what looks to be another painful autumn Budget Reeves own goal Inflation jumped by more than expected in June to its highest level in more than a year. ONS figures show that consumer prices rose by 3.6pc in the 12 months to June, up from 3.4pc in May. This is the highest rate since February last year. The rise was 0.2 percentage points above analyst expectations. The most problematic aspect of the UK's high inflation rate, which is well above the Bank of England's 2pc target, is how much it differs from similar countries. It is by far the highest inflation rate of any G7 country, though Japan's June reading is due later this week. In fact, other large European economies are struggling more with low inflation, a sign of households and businesses feeling nervous and reluctant to spend. Prices are rising by 0.8pc in France and 1.7pc in Italy. In Germany, meanwhile, prices in June were exactly 2pc higher than a year ago – the holy grail for rate setters. Even in the US, where Donald Trump is actively driving up prices with his aggressive and controversial tariffs, inflation was just 2.7pc last month. Only in Japan have prices risen faster than in the UK this year – but its inflation rate is forecast to ease to 3.3pc in June when final numbers are reported. 'The UK is again becoming an international outlier to the upside on inflation,' warns Andrew Wishart at Berenberg. 'The problem stems entirely from domestic price pressures, which have been exacerbated by the Government's choices on the minimum wage and employers' National Insurance contributions.' In other words, Reeves has hardly helped herself by hitting employers with the twin pressures of a £25bn tax raid and another inflation-busting minimum wage rise. Both took effect in April, when bills typically rise and the energy price cap also went up. June's inflation data suggests businesses are passing much of this increased cost on to customers in the form of higher prices. Food for thought The ONS said the jump in inflation was driven by higher food prices and transport costs, in particular petrol and diesel prices. It comes after the war between Israel and Iran prompted a spike in oil prices. Oil has fallen from a peak seen at the start of the year but remains higher than it was at the start of June. Flight tickets also rose by 7.9pc between May and June, the fastest rise for this time of year since 2018. While these factors are largely outside the Government's control, food prices have risen every month since Ms Reeves's National Insurance tax raid on employers took effect in April. Richard Heys from the ONS said: 'Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year.' Food prices rose by 4.5pc in the year to June, climbing from a rate of 4.4pc in May. It follows warnings from retailers that this would be an inevitable consequence of surging employment costs. 'Despite fierce competition between retailers, the ongoing impact of the last Budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising,' says Kris Hamer at the British Retail Consortium. 'The price of many staples rose on the previous month, including bread, rice and pasta.' Struggling economy The timing could hardly be worse for the Chancellor. After fast growth at the start of the year, the economy has effectively ground to a halt. It shrank by 0.1pc in May, after declining by 0.3pc in April. Tariffs, tax rises and global uncertainty have left bosses fearful. The latest figures from the professional body for chartered accountants ICAEW show confidence among business leaders is at a three-year low. It is perhaps unsurprising, then, that the employment market is in a sorry state. Companies are only advertising 736,000 jobs – the lowest outside of Covid since spring 2015. The unemployment rate is at its highest level since just after the final lockdowns ended, at 4.6pc. All of this makes for grim reading in Downing Street. What it means for rates For policymakers at the Bank of England, meanwhile, it means any decision they make is a gamble. Cutting interest rates too slowly risks placing unnecessary burdens on already-struggling businesses and leaving lots of people unemployed. Move too fast, however, and already high inflation could run out of control. Andrew Bailey, the Bank's Governor, has suggested a weakening job market could make him act more decisively. But while markets are still pricing in a rate cut from their current level of 4.25pc in August and another one later in the year, economists are starting to worry. 'August will be a close call,' says Wishart. 'If the data between now and Aug 7 suggest price pressures will remain high and the labour market is stabilising, a majority for a pause in interest rate cuts should emerge.' Yael Selfin, chief economist at KPMG, says: 'Today's data suggests underlying inflationary pressures remain persistent. This is unlikely to ease concerns about the potential second-round effects from the tax measures and may reinforce the Monetary Policy Committee's cautious stance ahead of next month's meeting.' All of this could spell further trouble for Reeves. While higher inflation tends to boost receipts for the Treasury, it also adds to costs. On top of that, investors in gilts – as UK government bonds are known – are on edge. Government borrowing costs jumped after the ONS inflation numbers came out, with yields on 10-year gilts up by four basis points to 4.66pc. 'Markets must be starting to question the prospect of an August rate cut,' says former rate setter Andrew Sentance. If hopes of a rate cut do dwindle, it will be yet another blow for an unhappy Chancellor desperately battling to get her budget back on track. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Bloomberg
6 hours ago
- Bloomberg
Pound Risks Worst Run in a Decade Ahead of Key Labor Market Data
The pound headed for its longest slide in a decade as traders looked ahead to key labor market data that could bolster the case for interest-rate cuts. Sterling slipped 0.1% against the dollar in its ninth day of losses, taking it to a two-month low of $1.3365. The currency shrugged off mild gains earlier on Wednesday that came after hotter-than-expected UK consumer-price data.
