Latest news with #JayPowell
Bloomberg
2 hours ago
- Business
- Bloomberg
Bloomberg Surveillance: Fed and Earnings
Watch Tom and Paul LIVE every day on YouTube: Bloomberg Surveillance hosted by Tom Keene & Paul Sweeney July 29th, 2025 Featuring: 1) Lael Brainard, Senior Fellow at Harvard University and former Fed Vice Chair and former Director of the National Economic Council, talks about the Fed, rate cuts, and Fed independence. Fed Chair Jay Powell said in his press conference after the Fed held rates yesterday that the central bank needed to stay on guard against inflation risk and rejected arguments for an interest-rate cut. 2) Rich Clarida, Global Economic Advisor at PIMCO, offers his reaction to yesterday's Fed decision and talks about the outlook for rate cuts and Fed independence. Fed Chair Jay Powell said the Fed is well-positioned for now, given lingering uncertainties surrounding President Donald Trump's tariffs and their economic impact, and that a reasonable base case is that the effects on inflation could be short-lived. 3) Meera Pandit, Global Market Strategist at JPMorgan Investment Management, talks markets and rates ahead of tomorrow's jobs report and tariff deadline. Stocks rose in early trading as Big Tech earnings delivered on optimism around the AI boom, with Microsoft Corp. on course to become the second company to reach a $4 trillion market capitalization. 4) Mark Lehmann, CEO at Citizens JMP, on growing M&A sentiment and how the AI race is playing out in San Francisco. It comes as Meta said yesterday it is increasing spending next year, with executives saying now is the time to seize on investment opportunities in artificial intelligence. 5) Anurag Rana, Senior Tech Analyst at Bloomberg Intelligence, wraps Microsoft earnings and looks ahead to Amazon and Apple.
Telegraph
7 hours ago
- Business
- Telegraph
High interest rates trigger fears of US housing crunch
High interest rates have triggered fears of a US housing crunch as sellers cut their asking prices by more than at any point in the last nine years. The share of homes up for sale with a price reduction has surged to 20pc, the highest rate since 2016 and up from 15pc when Donald Trump won the election late last year, according to and Capital Economics. This has led to average house prices falling for three straight months in America, including a 0.3pc drop in May, according to the S&P Core Logic Case-Shiller Index. Many major cities even recorded larger drops, with prices in Los Angeles and San Francisco falling by 1pc and 0.8pc in May. Some economists believe that concerns over falling house prices have fuelled Donald Trump's calls for lower interest rates. James Knightley, chief international economist at ING said that: 'I think this is a key reason why Donald Trump and Scott Bessent [the US Treasury Secretary] have been saying the Fed needs to cut rates. 'There's a nervousness about the housing market, which is the biggest store of household wealth and is so important for the economy.' Responding to better-than-expected GDP and inflation data on Wednesday, Mr Trump renewed his criticism of Jay Powell, the Federal Reserve chairman. Posting on Truth Social, he said: ''Too Late' MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!' The Fed, however, did not comply when it announced last night that rates would stay the same. Mr Powell said that it still too early to be able to understand the full impact of Mr Trump's tariffs on inflation. Falling home sales US home sales plunged to a 30-year low in 2024 as mortgage rates surpassed 7pc to wipe out buyer demand. Mortgage rates were falling steadily until last autumn, when they hit a low of 6.08pc in September just before Mr Trump's election win, but they have since jumped back to 6.74pc. US mortgage rates are primarily determined by 10-year US Treasury yields, which have climbed from 3.74pc at the start of October to 4.36pc. This jump has largely been triggered by investors' fears over the impact of Mr Trump's policies on US debt and inflation. But these rates are also anchored by central bank interest rates, which the Fed has kept on hold since its last cut in December. The Fed is expected to continue to hold rates at its next interest rate decision later today. The president has criticised Mr Powell repeatedly in recent months, recently calling him a 'numbskull' and suggesting that he could find a way to fire him. Unlike in the UK, where buyers typically purchase homes with two or five-year fixed-rate loans, buyers in the US purchase with mortgage rates that are generally fixed for 30 years. This means that higher borrowing costs have stalled the housing market. As mortgage rates have climbed, existing homeowners have become unable to move house because doing so would mean locking in at far higher rates. But some are now starting to crack under the pressure. Mr Knightley said: 'People can try and cope only so long in their properties. They can do refurbishments and build extensions. But there comes a point, whether it be structural family changes or job changes, when they have to move. 'This very stretched market is like an elastic band. It can only stretch so far before it gets to a snapping point. 'The risk is that we do see house price falls, wealth falls, there is more happiness and uncertainty for households and that just weighs on economic activity more.'
Yahoo
2 days ago
- Business
- Yahoo
Market Minute 7-28-25- Markets Cheer EU, China Deal Progress
The equity markets are starting the week off with a positive tone thanks to trade deal progress over the weekend. Gold and silver are a bit lower, while crude oil is higher. The dollar is popping, but Treasuries are taking on water. To get more articles and chart analysis from MoneyShow, subscribe to our .) Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA The US and European Union reached a trade deal in Scotland over the weekend, one that will result in EU exporters paying 15% tariffs (rather than up to 50%) on most products. Tariffs on many US exports to Europe will drop to zero. The EU is the US' biggest trading partner, with just over 20% – or about $303 billion – of total imports coming from the bloc in the first five months of 2025. Some European countries complained the deal was too generous to the US. But markets on both sides of the Atlantic rallied because worst-case outcomes were averted. Meanwhile, negotiators from the US and China are meeting in Stockholm this week. The gathering will likely result in another 90-day pause on new cross-border tariffs, one designed to give both sides more time to talk. The previous extension runs through Aug. 12. The iShares Europe ETF (IEV) and iShares China Large-Cap ETF (FXI) are handily outperforming the SPDR S&P 500 ETF (SPY) in 2025, as you can see in this chart. SPY, IEV, FXI (YTD % Change) Data by YCharts The Federal Reserve will meet this week to discuss interest rates, with a decision to be announced Wednesday afternoon. Despite heavy pressure from the White House, Chairman Jay Powell & Co. will almost certainly NOT cut rates this week. But Powell could hint that cuts are coming soon. The final three Fed meetings of 2025 conclude on Sept. 17, Oct. 29, and Dec. 10. See also: ORCL: A Cloud Computing Giant Seeing Turbocharged Growth from AI Finally, Tesla Inc. (TSLA) and Samsung Electronics Co. just inked a $16.5 billion, multi-year semiconductor production deal. Samsung will supply Tesla's next-generation AI6 chip from a new factory in Texas, a major step in Samsung's quest to catch up to industry leader Taiwan Semiconductor Manufacturing (TSM). Samsung shares jumped almost 7% on the news. More From TSLA & GOOGL: Which One is TRULY Focused on Cars CCI: A Wireless Tower Titan that Just Reported Stellar Results Market Minute 7/25/25: Market Bubble? Or Just Gains on Great Earnings? 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
Fox News
4 days ago
- Business
- Fox News
Trump is concerned about how the Fed is managed more than about firing Powell, says deputy chief of staff
Deputy White House chief of staff James Blair discusses where President Trump stands on Jay Powell's position with the Federal Reserve, when we may start to see rate cuts, and more on 'Sunday Night in America.'
Yahoo
4 days ago
- Business
- Yahoo
Bond Traders Await Fed Meeting, Refunding and July Jobs Report
(Bloomberg) -- Bond investors enter a frenetic week comprising the latest Treasury view on quarterly debt sales, a Federal Reserve meeting, and plenty of data crowned by the July jobs report. The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy With four trading days left in July, the Treasuries market is on course for only its second negative month this year, as investors have reduced rate cut expectations and pushed yields higher across all maturities amid a string of resilient data reports. Traders price no prospect of a US rate shift this week, and continue to lean towards a quarter-point reduction at the Fed's meeting in mid-September, with around 100 basis points of easing seen over the next 12 months. At this week's Fed meeting, focus on whether some officials dissent over the central bank staying on the sidelines, while traders will closely monitor chair Jay Powell's press conference amid the pressure from the White House for immediate rate cuts. The pricing of rate cuts may well shift at the end of the week, with the release of the July employment report and other key labor and inflation data that could well influence the Fed's path and market performance for the rest of the year. Molly Brooks, US rates strategist at TD Securities gauges the employment data 'as the top driver here,' as consensus estimates for headline jobs has been slipping 'so we could see that being a key event for the market to react to concerns on growth and the labor mandate slowing.' As for the Fed meeting, Brooks said they 'are expecting Governors Bowman and Waller to dissent' and 'we could also see a modest bullish response in rates there. Given their recent sentiment, we don't think the market will be too shocked, but a dissent will still show a deliberate action there.' Also in focus will be how Treasury plans to address the financing of large US deficits over the next quarter and into 2026. Traders expect issuance of Treasury bills will expand and gauge to what extent Treasury uses buybacks to reduce older debt issues and bolster overall market liquidity. The bond market also has a compacted late month auction schedule with two-, and five-year notes being sold on Monday as the month ends Thursday. What to Watch Economic data: July 28: Dallas Fed manufacturing activity July 29: Advance goods trade balance, imports and exports; wholesale and retail inventories; FHFA house price index; S&P CoreLogic US HPI; JOLTS job openings; Conference Board consumer confidence; Dallas Fed services activity July 30: MBA mortgage applications; ADP employment; GDP annualized QoQ (Q2 advanced); Personal consumption; GDP price index; core PCE price index QoQ; pending home sales July 31: Challenger job cuts; initial jobless claims; personal income and spending; PCE price index; employment cost index (Q2); MNI Chicago PMI Aug. 1: Non-farm payrolls, unemployment rate, average hourly earnings; S&P Global US manufacturing PMI; ISM manufacturing index; construction spending; U. of Michigan consumer sentiment and inflation expectations; Wards total vehicles sales Fed calendar: July 30: Federal Open Market Committee interest rate decision and policy statement; Chair Jerome Powell press conference Auction calendar: July 28: 13-, 26-week bills; two-year notes; five-year notes July 29: 6-week bills; two-year floating rate notes; seven-year notes July 30: US Treasury quarterly debt refunding announcement; 17-week bills July 31: 4-, 8-week bills Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border ©2025 Bloomberg L.P. 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
