Latest news with #Powell
Business Insider
5 hours ago
- Business
- Business Insider
Markets are gearing up for rate cuts. Morgan Stanley thinks investors will be disappointed.
Economists at Morgan Stanley think investors are about to be disappointed in the outcomes of the next two Federal Reserve meetings. The bank said in a note on Friday that, despite a recent push from President Donald Trump and recent dovish talk from central bankers, the July and September FOMC meetings will result in no change to borrowing costs. The Fed's cautious approach this year has sparked backlash from President Trump, who has said he believes interest rates need to be cut "by at least 2-3 points." But since the last meeting, other top Fed officials have come out in support of rate cuts in July, with markets cheering the dovish talk. But Morgan Stanley says don't count on it. Their thesis centers around two key points. First, they expect that the economic data released in the short term will remain consistent with the "wait and see approach" displayed by Powell. While the Fed chairman has reaffirmed a need to further assess the impact of tariffs, he has also recently raised concerns regarding the reliability of economic data. "We expect firmer inflation prints showing more signs of a tariff push over the summer," the analysts note, adding that they also expect the coming employment report to be "relatively solid," both of which are factors unlikely to push the Fed toward rate cuts. They also highlight that despite the recent push from Fed governors Christopher Waller and Michelle Bowman, the pro-rate-cut camp is relatively small. "The Summary of Economic Projections (SEP) published last week revealed that there are seven policymakers who expect no cuts this year," the report states. "In fact, the overall tone of Fed speakers this week was much more aligned with Chair Powell's." San Francisco Fed president Mary Daly and New York Fed president John Williams are examples of Fed officials who have taken a more hawkish approach to interest rates. Both have expressed sentiments similar to Powell's. Morgan Stanley added that both Waller and Bowman's statements raised the probability of rate cuts to 20% in July and 60%-90% in September. The higher odds were cheered by markets during the week, with more dovish forecasts helping propel the S&P 500 to a new all-time high. While Morgan Stanley's analysts note uncertainty remains high and that their predictions could be wrong, they maintain that firmer inflation prints will be coming later in the summer and will likely peak in July or August. They add that their forecast is aligned with Powell's expectations, which include tariffs pushing prices higher in the coming months.
Canada Standard
7 hours ago
- Business
- Canada Standard
Daily World Briefing, June 28
Trump continues pushing Fed chair to lower interest rates U.S. President Donald Trump has continued to lob personal insults and attacks at Federal Reserve Chair Jerome Powell in a bid to get the central bank to lower interest rates. Frustrated with the Fed's wait-and-see attitude toward lowering interest rates, Trump has ramped up attacks against Powell in recent weeks. Earlier this week during a NATO summit in the Netherlands, Trump hurled his latest oratory grenade at the Fed chief, who the president nominated for the position eight years ago. "I think he's terrible," Trump told reporters during a press conference, referring to Powell. The president called Powell a "very average mentally person," and said the Fed chief has "a low IQ for what he does." "I think he is a very stupid person, actually," Trump said. Canadian PM says negotiations with U.S. "complex" Canadian Prime Minister Mark Carney on Friday called the negotiations with the United States "complex" when he responded to the announcement of U.S. President Donald Trump to terminate all trade talks with Canada with potential new tariffs. "We'll continue to conduct these complex negotiations in the best interest of Canadians," Carney said to local media. "It's a negotiation." Trump announced Friday that the United States would terminate all trade talks with Canada due to Canada's digital services tax on U.S. tech companies. Canada's digital services tax on American technology companies is a direct and blatant attack on the United States, said Trump in a post on social media. Set to take effect on June 30, the digital services tax would have U.S. companies like Amazon, Google, Meta, Uber and Airbnb pay a three percent levy on revenue from Canadian users. Canada and the United States have been in negotiations to get Trump to lift the tariffs on Canadian goods, which have already led to major economic shrinking. U.S. Supreme Court limits injunctions against Trump's birthright citizenship order The U.S. Supreme Court ruled on Friday that district judges lack the authority to grant nationwide injunctions against the Trump administration's executive order to effectively end birthright citizenship. In a 6-3 vote along ideological line, Supreme Court justices granted a request by the Trump administration to narrow the scope of nationwide injunctions imposed by district judges. "Federal courts do not exercise general oversight of the Executive Branch," Justice Amy Coney Barrett wrote for the majority, noting that "When a court concludes that the executive branch has acted unlawfully, the answer is not for the court to exceed its power, too." However, the three liberal justices issued dissents to the decision. "Children born in the United States and subject to its laws are United States citizens," Justice Sonia Sotomayor said, adding "that has been the legal rule since the founding." Iran's FM says IAEA chief's insistence on visiting bombed nuclear sites "meaningless" Iranian Foreign Minister Seyed Abbas Araghchi said on Friday the insistence of the United Nations nuclear watchdog's chief on visiting Iran's bombed nuclear sites is "meaningless." He made the remarks in a post on social media platform X while accusing Director General of the International Atomic Energy Agency (IAEA) Rafael Grossi of facilitating the adoption of a resolution by the agency's Board of Governors against Tehran and the bombings of Iranian nuclear facilities by the United States and Israel. "Grossi's insistence on visiting the bombed sites under the pretext of safeguards is meaningless and possibly even malign in intent. Iran reserves the right to take any steps in defense of its interests, its people, and its sovereignty," he said. He pointed to a recent plan approved by the Iranian parliament, and later passed into law by the country's Constitutional Council, which called for a halt in Iran's collaboration with the IAEA, adding, "This is a direct result of Grossi's regrettable role in obfuscating the fact that the agency had -- a full decade ago -- already closed all past issues (with Iran)." Grossi on Friday highlighted the necessity for IAEA inspectors to continue their verification activities in Iran, "as required under the Comprehensive Safeguards Agreement," according to a statement published on the agency's website. Russia, Ukraine agree to hold 3rd round of talks after prisoner exchange: Putin Russia and Ukraine have agreed to hold the third round of negotiations after completing their war prisoner exchange, Russian President Vladimir Putin said Friday after the Supreme Eurasian Economic Council in Minsk. Russia and Ukraine agreed to hold the third-round of talks after the completion of the exchange of prisoners of war and the transfer of bodies of dead militants, negotiated in Istanbul on June 2, Putin told reporters. Russia is ready for new round of negotiations with Ukraine in Istanbul, the president said, noting that the time and place of the third-round talks need to be agreed on. The draft memoranda between Russia and Ukraine on the settlement should become the subject of discussion during the third round of negotiations, Putin said.
Economic Times
9 hours ago
- Business
- Economic Times
Why Donald Trump must let Jerome Powell do his job
'One of the dumbest, most destructive people in Government' 'Too Late' Jerome Powell is a Fool, who doesn't have a clue.' 'A golfer who can't putt.' 'Total and Complete Moron.' 'Real dummy… very dumb, hardheaded person.' The Economy Speaks — But Are We Listening? Live Events GDP projections have been cut from 2.1% in Dec 2024 to 1.4% in June 2025. Core PCE (Personal Consumption Expenditure) Inflation is rising: 2.5% in Dec 2024 to 3.0% in June 2025. Unemployment? It's inching up too: From 4.3% in Dec 2024 to 4.5% in June 2025. Powell: The Only Adult in the Room Trump's Interference: A Strategic Mistake? Markets Can Ignore Reality — Powell Can't Let's not repeat that mistake. Final Word: Let the Man Do His Job (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel No, These aren't random insults from an angry investor on social media. These are actual words from the President of the United States 'Donald J. Trump' not aimed at a political rival, but at his own Federal Reserve Chairman, 'Jerome Powell'.Now imagine this: the most powerful economy in the world, hanging on a tightrope of inflation job losses , and slowing growth and its central banker being publicly undermined by the very person who nominated him. After decades in the market, I've learned one thing with certainty: nothing shakes investor confidence more than uncertainty at the Powell is meticulously navigating an economy dangerously close to stagflation , Trump is busy firing verbal missiles that only escalates confusion. Powell's job is hard enough already. What he needs is support, not markets may be cheering, with the S&P 500 rallying after the Fed's latest decision to hold rates steady. But don't let the green screens fool you. the U.S. economy 's foundations are beginning to aren't just numbers, this is the classic recipe for stagflation, and we've seen it before. In the 1970s and early '80s, the Fed learned a hard truth: you don't fight inflation with politics or tweets — you fight it with policy and Powell is the one standing between global economy and another inflation spiral. The Fed Chair doesn't get to dance with sentiment or popularity polls. He deals in data — and data alone. Unlike markets, Powell cannot afford to celebrate here we are: headlines promise rate cuts, politicians demand stimulus, and the public cheers short-term sugar highs. But Powell must look beyond applause. He must look at the map, not the a bid to regain political ground, Trump has renewed his campaign of Fed criticism. From threatening to replace Powell to promising deep tax cuts and trade tariffs — his actions are not only populist but a threat to economic connect the dots: tariffs lead to price hikes, Higher prices raise inflation, and Inflation forces rate hikes — creating a vicious cycle that no central bank wants to enter, especially not one already juggling slowing growth and rising stock market has a notorious history of celebrating bad news when it's wrapped in a pretty forecast. But central bankers can't afford to keep myopic vision. Powell is fighting to avoid a situation where political pressure forces him to cut rates too soon, only for inflation to spiral out of control retail investors want relief. Yes, Wall Street craves easy money. But at what cost?I've seen this play before. When inflation was called 'transitory' in 2021, we ended up with the highest price surge in four doesn't need another stage performer. It needs a steady hand, adjusting economic levers with precision, not populism. That man, whether popular or not is Jerome Trump, you've built towers. Now let Mr Powell install Fed Chair doesn't need jibes — he needs space. Because this isn't about applause. It's about accountability. It's not about dominance. It's about Powell do his job — not because it's easy, but because it's essential. Not because it's popular, but because it's right. In a world roaring for attention, real leadership still whispers through results.
Time of India
9 hours ago
- Business
- Time of India
Why Donald Trump must let Jerome Powell do his job
'One of the dumbest, most destructive people in Government' 'Too Late' Jerome Powell is a Fool, who doesn't have a clue.' 'A golfer who can't putt.' 'Total and Complete Moron.' 'Real dummy… very dumb, hardheaded person.' No, These aren't random insults from an angry investor on social media. These are actual words from the President of the United States 'Donald J. Trump' not aimed at a political rival, but at his own Federal Reserve Chairman, 'Jerome Powell'. Now imagine this: the most powerful economy in the world, hanging on a tightrope of inflation , job losses , and slowing growth and its central banker being publicly undermined by the very person who nominated him. After decades in the market, I've learned one thing with certainty: nothing shakes investor confidence more than uncertainty at the top. While Powell is meticulously navigating an economy dangerously close to stagflation , Trump is busy firing verbal missiles that only escalates confusion. Powell's job is hard enough already. What he needs is support, not sabotage. The Economy Speaks — But Are We Listening? The markets may be cheering, with the S&P 500 rallying after the Fed's latest decision to hold rates steady. But don't let the green screens fool you. the U.S. economy 's foundations are beginning to shake. Live Events GDP projections have been cut from 2.1% in Dec 2024 to 1.4% in June 2025. Core PCE (Personal Consumption Expenditure) Inflation is rising: 2.5% in Dec 2024 to 3.0% in June 2025. Unemployment? It's inching up too: From 4.3% in Dec 2024 to 4.5% in June 2025. These aren't just numbers, this is the classic recipe for stagflation, and we've seen it before. In the 1970s and early '80s, the Fed learned a hard truth: you don't fight inflation with politics or tweets — you fight it with policy and patience. Powell: The Only Adult in the Room Today, Powell is the one standing between global economy and another inflation spiral. The Fed Chair doesn't get to dance with sentiment or popularity polls. He deals in data — and data alone. Unlike markets, Powell cannot afford to celebrate illusions. Yet here we are: headlines promise rate cuts, politicians demand stimulus, and the public cheers short-term sugar highs. But Powell must look beyond applause. He must look at the map, not the mood. Trump's Interference: A Strategic Mistake? In a bid to regain political ground, Trump has renewed his campaign of Fed criticism. From threatening to replace Powell to promising deep tax cuts and trade tariffs — his actions are not only populist but a threat to economic stability. Let's connect the dots: tariffs lead to price hikes, Higher prices raise inflation, and Inflation forces rate hikes — creating a vicious cycle that no central bank wants to enter, especially not one already juggling slowing growth and rising joblessness. Markets Can Ignore Reality — Powell Can't The stock market has a notorious history of celebrating bad news when it's wrapped in a pretty forecast. But central bankers can't afford to keep myopic vision. Powell is fighting to avoid a situation where political pressure forces him to cut rates too soon, only for inflation to spiral out of control again. Yes, retail investors want relief. Yes, Wall Street craves easy money. But at what cost? I've seen this play before. When inflation was called 'transitory' in 2021, we ended up with the highest price surge in four decades. Let's not repeat that mistake. Final Word: Let the Man Do His Job America doesn't need another stage performer. It needs a steady hand, adjusting economic levers with precision, not populism. That man, whether popular or not is Jerome Powell. Mr. Trump, you've built towers. Now let Mr Powell install stability. The Fed Chair doesn't need jibes — he needs space. Because this isn't about applause. It's about accountability. It's not about dominance. It's about direction. Let Powell do his job — not because it's easy, but because it's essential. Not because it's popular, but because it's right. In a world roaring for attention, real leadership still whispers through results.
BusinessToday
10 hours ago
- Business
- BusinessToday
KLCI May Continue To Trend Higher With Resistance Level At 1,540
Asian markets mostly closed higher, buoyed by hopes that the US-brokered Israel-Iran ceasefire would hold, which also contributed to a decline in oil prices. Sentiment across the region was further boosted by a mildly dovish tone from US Federal Reserve Chairman Jerome Powell, echoing earlier remarks from Fed officials Waller and Bowman, which kept the possibility of a July rate cut in play, contingent on inflation trends and rising labour market risks. United States Market: In the US, the Dow Jones Industrial Average slipped 107 points, experiencing profit-taking after rallying 917 points over the past three consecutive sessions. Investors weighed the progress of the Middle East ceasefire against Powell's cautious congressional remarks. Powell indicated that tariff-driven inflation is manageable but reaffirmed that the Fed is not yet ready to cut rates despite political pressure. Economic data from the US showed new home sales falling to their lowest level since October 2024, impacted by high mortgage rates. Markets are now looking ahead to the release of durable goods data on June 26 and the core Personal Consumption Expenditures (PCE) reading on June 27. After market hours, Micron Technology (MU) gained 0.9% on strong earnings and outlook. Malaysian Market Performance: mirroring positive trends in Wall Street and regional markets, Malaysia's FBM KLCI gained 5.5 points to close at 1,519.8. Market breadth remained positive, indicating more advancing stocks than declining ones. Trading volume stood at 3.15 billion shares, a 15% increase compared to the June month-to-date (MTD) average of 2.74 billion shares. The total trading value reached RM2.27 billion, up 7.6% from the June MTD average of RM2.11 billion, signaling underlying market strength. Local institutions resumed their net buying, adding RM110 million (June MTD: +RM1.78 billion; Year-to-Date (YTD): +RM10.56 billion). In contrast, foreign funds continued their net outflows, recording -RM51 million today after a brief RM5 million nibble a day ago (June MTD: -RM1.50 billion; YTD: -RM12.33 billion). Retail investors also registered net outflows of -RM59 million (June MTD: -RM279 million; YTD: +RM1.77 billion). The KLCI is trending higher, with HLIB noting that major resistance levels are identified at 1,523, 1,532, and 1,540. Related
