Latest news with #Jerome Powell


NHK
a day ago
- Business
- NHK
US inflation heats up as tariffs start to bite
The US Labor Department announced on Tuesday that the Consumer Price Index in June rose 2.7 percent from a year earlier. That was the fastest pace since February. Consumers are starting to feel the impact of President Donald Trump's trade policies. Costs are rising for products with the most exposure to tariffs, such as toys, sporting goods and household furnishings. Prices for each of these items jumped by at least 1 percent. Trump responded to the figures by once again taking aim at the Federal Reserve. He wants policymakers to soften the blow of higher prices by lowering interest rates. At the White House, Trump said: "Interest rates should be coming down where we have a very, very successful country. We should have the lowest interest rate anywhere in the world, and we don't." Trump has been pressuring Fed Chair Jerome Powell to step down. Powell's term is set to expire next May, but he can technically remain on the Fed's board until 2028. Treasury Secretary Scott Bessent said in an interview with Bloomberg TV that officials have begun a "formal process" to replace Powell. He said Powell should leave the Fed entirely when his term as chair ends.
Yahoo
a day ago
- Business
- Yahoo
3 Large-Cap Value Funds to Buy on Growing Uncertainty Over Rate Cuts
The uncertainty over the timing of the next interest rate cut is making investors jittery. The Federal Reserve has suggested that it is in no rush to cut rates, as it has adopted a cautious approach. Policymakers are particularly concerned about rising inflation, which could be intensified by tariffs imposed by President Donald Trump. According to the minutes from the Fed's latest meeting, released last week, most officials are not inclined toward an immediate rate cut. This could keep markets volatile for a longer period. In such an unpredictable environment, investors may want to consider investing in large-cap value funds for safety. Three such funds are: Shelton Equity Income Investor EQTIX, Putnam Large Cap Value A PEYAX and Northern Income Equity NOIEX. The minutes of the Federal Reserve's latest meeting suggest that only a few officials believe that a rate cut might be appropriate as early as this month. Most officials are adopting a wait-and-watch stance, wary of potential inflation stemming from tariffs that are set to begin on Aug. 1. While the minutes acknowledge the inflation risk as 'considerable uncertainty,' most participants expect any impact to be minor or short-lived and don't see an urgent need for action. Meanwhile, Trump has been pressuring the Federal Reserve for immediate rate cuts and has even called for Chairman Jerome Powell's resignation, claiming that the delay in rate cuts is costing the U.S. economy hundreds of billions of dollars. Though some investors remain hopeful for a 25-basis-point cut in July due to signs of slowing inflation and a weakening job market, it appears unlikely the Fed will move forward with a cut at the upcoming FOMC meeting, raising the possibility of renewed market volatility. Also, stocks retreated on Friday after Trump announced a 35% tariff on Canada, one of the biggest trading partners of the United States, and threatened higher duties across the board. This reignited fears of a trade war after indexes hit new all-time highs earlier in the week. We've identified three large-cap value mutual funds that have given impressive annualized returns over 3-year and 5-year periods. These funds also hold a Zacks Mutual Fund Rank of #1 (Strong Buy), require an initial investment of no more than $5,000 and have a low expense ratio. The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money). Shelton Equity Income Investor fund seeks to achieve a high level of income and capital appreciation by investing primarily in income-producing U.S. equity securities. EQTIX invests primarily in securities that generate a relatively high level of dividend income and have the potential for capital appreciation. Shelton Equity Income Investor fund also invests at least 80% of its total assets in stocks. EQTIX's 3-year and 5-year annualized returns are 14.5% and 12.9%, respectively. Shelton Equity Income Investor fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.65%. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here. Putnam Large Cap Value A fund seeks current income. Capital growth is a secondary objective when consistent with seeking current income. PEYAX invests mainly in common stocks of U.S. companies, with a focus on value stocks that offer the potential for current income and capital growth. PEYAX's 3-year and 5-year annualized returns are 16.5% and 16.8%, respectively. Putnam Large Cap Value A fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.88%. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here. Northern Income Equity fund seeks to provide a high level of current income with long-term capital appreciation as a secondary objective. NOIEX's approach is to identify the securities of companies that generate high current yields and offer prospects for growth and possible capital appreciation. NOIEX's 3-year and 5-year annualized returns are 17.7% and 16.1%, respectively. Northern Income Equity fund has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.49%. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here. Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (EQTIX): Fund Analysis Report Get Your Free (PEYAX): Fund Analysis Report Get Your Free (NOIEX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio


CNA
3 days ago
- Business
- CNA
Traders largely shrug off tariffs before US consumer price data
NEW YORK :The euro hit a three-week low on Monday before recovering to trade little changed on the day, while the dollar was steady against a basket of currencies, as traders largely shrugged off new tariffs ahead of key U.S. inflation data on Tuesday. U.S. President Donald Trump on Saturday threatened to impose a 30 per cent tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major trading partners failed to reach a comprehensive trade deal. But markets have become increasingly immune to tariff headlines since Trump in April first announced larger than expected trade levies, then delayed their implementation. 'It's something that's happened before and the shock value is gone,' Joseph Trevisani, senior analyst at FX Street, said. At the same time, 'the negative predictions haven't come to pass so I don't think you're going to get too much more emphasis for the markets out of tariffs.' The European Union and South Korea said on Monday it was working on trade deals with Trump that would soften the blow of the levies. Federal Reserve Chair Jerome Powell has said that he expects inflation to increase this summer as a result of tariffs, which is seen keeping the U.S. central bank on hold until later in the year. Investors will be watching consumer price inflation data for June on Tuesday for any signs that price pressures are accelerating again. Economists polled by Reuters expect headline inflation to increase to 2.7 per cent on an annual basis, up from 2.4 per cent the prior month. Core inflation is expected to rise to 3.0 per cent, from 2.8 per cent. Fed funds futures traders are pricing in 50 basis points of interest rate cuts by year-end, with the first reduction expected in September. Markets are also focused on the U.S. fiscal and debt outlook and whether Trump will replace Powell as he criticizes him for delaying interest rate cuts and for renovation costs at the Fed's headquarters. The euro was last up 0.03 per cent on the day at $1.1691. The dollar index fell 0.02 per cent to 97.87. Against the Japanese yen, the dollar weakened 0.03 per cent to 147.35. The Mexican peso weakened 0.58 per cent versus the dollar at 18.762. The British pound fell 0.18 per cent to $1.3473. Bitcoin surpassed $120,000 for the first time on Monday, marking a milestone for the world's largest cryptocurrency as investors bet on long-sought policy wins for the industry this week. It was last up 1.60 per cent at $121,038 and earlier reached $123,153.


Bloomberg
6 days ago
- Business
- Bloomberg
Pence Says Trump Has Right to Criticize Powell, As President Calls for Cut
Bloomberg's Molly Smith and Ira Jersey react to President Trump's latest attacks on Fed chair Jerome Powell and talk about the importance of the Fed's dual mandate. (Source: Bloomberg)


Reuters
7 days ago
- Business
- Reuters
US weekly jobless claims fall unexpectedly in latest week
July 10 (Reuters) - The number of Americans filing new applications for jobless benefits unexpectedly fell last week, suggesting employers may be holding on to workers despite other indications of a cooling labor market. Initial claims for state unemployment benefits dropped 5,000 to a seasonally adjusted 227,000 for the week ended July 4, the Labor Department said on Thursday. Economists polled by Reuters had forecast 235,000 claims for the latest week. The data included last week's July Fourth holiday and claims tend to be volatile around public holidays. Economists and U.S. central bankers have generally viewed the labor market as solid, if weakening somewhat. This is a view reinforced by last week's monthly jobs report that showed the unemployment rate ticking down to 4.1%, though largely because the workforce shrank, and a bigger-than-expected gain of 147,000 jobs, though highly concentrated in just a few sectors. Fed Chair Jerome Powell has noted that in the current low-hiring and low-firing environment, any increase in layoffs could rapidly push up the unemployment rate. So far that has not happened, though nearly 100 U.S. companies have announced layoffs this month, including Microsoft and Intel. Economists say President Donald Trump's still unsettled tariff policy is making it difficult for businesses to plan ahead. Hiring has been lackluster, making it harder for people out of work to find jobs. Last month's jobs report showed the median duration of unemployment rose in June to 10.1 weeks from 9.5 weeks in May. The number of people receiving unemployment benefits after an initial week of aid, a proxy for hiring, increased 10,000 to a seasonally adjusted 1.965 million during the week ending June 28, Thursday's claims report showed. The so-called continuing claims are at their highest level since November 2021, suggesting those who lose a job are taking longer to find a new position. The Federal Reserve last week left its policy rate in the 4.25%-4.50% range where it has been since December as central bankers wait to see if tariffs push up inflation before moving to lower rates.