Latest news with #economists
Bloomberg
11 hours ago
- Business
- Bloomberg
Trump Says He'll Choose Fed Chair Who Wants to Cut Rates
CC-Transcript 00:00Love them to resign if he wanted to. Agent done lousy job. Look, if you were there, you'd say, well, you know, the United States is doing well. They have no inflation. And if they do get inflation in a year or two, we'll put we'll start raising the rates. We get rid of the inflation, you know, do other things. Biden had the worst inflation in the history of our country. 19%, but I think it was much higher than that. Frankly, they say 19%. I said I think it's a lot higher than that. And we have almost no inflation now. We've done a great job in a short period of time. Energy prices are way down. Gasoline now is down to close to $2 in a lot of places. A couple of places I see it even broke. It's like 198 a gallon. We've done a great job on inflation and honestly, pretty much everything else. I think that I think it's very sad the way people act. You know, you have a guy in there that with the stroke of a pen, could lower interest rates and save us hundreds of billions of dollars a year. But he's a stupid person. You know, it's very interesting. He. I'm not sure if he doesn't understand it, because you should be able to understand it. It's sort of one on one economics, but I'm not sure of that. But think of it with the stroke of a pen, he talks about costs we can save. $600 billion. Maybe even these are nice numbers for you, right? $900,000,000,950 billion by lowering interest rates. And it's really just more of a paper movement. It's not like you're not cutting anything. You're not cutting jobs. It's just interest rates. And we're number 40 or 44, number 45, some places that you wouldn't believe that. You know, I don't want to be disparaging, but they pay a lower interest rate than the United States of America. And without us, everything blows up. You know, we sort of control the world in that sense. But we have a guy that's just a stubborn mule. And the stupid person that is making a big mistake is making a mistake. And it lasts for years. Because when you do the debt now, I've instructed my people not to do any debt beyond nine months or so. Get this guy out and whoever is in there, it will lower rates. If I don't if I think somebody is going to keep the rates where they are or whatever, I'm not going to put them in. I'm going to put somebody that wants to cut rates. There are a lot of them out there. And I said this morning, a lot of the business shows today were saying, you know, Trump is right. He should be cutting rates. Think of it. We have a great country. We're making a lot of money, would take it in billions of dollars in tariffs. We have one we have $15 trillion of money that wants to be invested here, which is a record in two months. It breaks any record that we've ever had for a whole year and not even close 15 trillion. And it's going to be much higher than that. That's after essentially two months because, you know, we've been doing it for about two months, two and a half months, $15 trillion breaks, every record in the book. There's never been anything like this. We have factories moving in, we have car plants moving in. We have everyone wants to be part of the United States. And as I told you and I said to everybody when I was in the Middle East, the king of Saudi Arabia, Qatar and UAE, all great leaders, they've all great leaders, all three of them said, you got the hottest country in the world and you did it. And at that time, I was there for four months. We got back a little while ago, but everybody says not only them, but we have the hottest country in the world right now. The only thing is we have a Fed chairman that is he doesn't get it. And you could have substantially lower like if we cut him two points would save more than 600. Think of it, more than $600 billion just because you cut. But you can't go out to the market and say, well, we have a guy that's got us at 4% or four and a half percent and we want to pay 2% or 1%. I think we should be paying 1% right now. And we're paying more because we have a guy who's suffering from, I think, Trump derangement syndrome, if you want to know the truth. But he's not good for our country.
Reuters
17 hours ago
- Business
- Reuters
Higher defence spending will weaken Europe finances without counter steps, says Scope Ratings
LONDON, June 27 (Reuters) - Higher defence spending will weaken European governments' credit profiles unless they are able to cut spending elsewhere or increase their revenues, ratings agency Scope said on Friday. NATO allies agreed on Wednesday to raise their collective spending goal to 5% of output over the next decade, citing the long-term threat posed by Russia and the need to strengthen civil and military resilience. "Higher defence expenditure will lead to higher borrowings and deteriorating debt-to-GDP trajectories in most EU countries, and thus weaker sovereign credit profiles, unless governments reduce spending elsewhere or increase revenues," Scope analysts said in a note due to be published on Monday. The additional spending burden will significantly raise pressure on countries such as France, Belgium and Italy that already face disciplinary measures from the European Union due to their high budget deficits, Scope added. Such fiscal constraints means defence spending could shift towards the European level, the analysts said. "Centralising EU security and defence financing could provide more sustainable and coordinated financing across member states while also creating economies of scale in defence and security procurement," they added. The EU is already creating an up-to 150-billion-euro ($175.85 billion) fund financed by joint borrowing for defence, but economists have said more common funding will likely be necessary. ($1 = 0.8530 euros)
Reuters
18 hours ago
- Business
- Reuters
US reports benign PCE inflation in May
June 27 (Reuters) - The U.S. Commerce Department said on Friday its Personal Consumption Expenditures (PCE) Price Index gained 0.1% in May, matching the rise in April and in line with the consensus estimate in a Reuters poll of economists. In the 12 months through May, PCE inflation increased 2.3% after climbing 2.2% in April. Stripping out the volatile food and energy components, the PCE Price Index increased 0.2% last month. That followed a 0.1% rise in the so-called core PCE inflation in April. In the 12 months through May, core inflation advanced 2.7% after rising 2.6% in April. The Fed tracks the PCE price measures for its 2% inflation target. The central bank last week left its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December. Yields on two-year U.S. Treasuries pared gains, while the reaction of stock futures was fairly muted. COMMENTS: "Personal income is disappointing. We were looking for an increase of about 0.3%, so now it's negative. We were looking for a weak personal spending number, but again negative. These two indicators raise the possibility that the economy has slowed in the second quarter and may be headed for negative economic activity." "On the inflation front, there were really no surprises with the exception of core (PCE), and it came in a little bit higher than expected." "I think the real worry here is personal income and spending moving lower. All signs point to a weakening economy, with a possibility that the economy has already fallen into a technical recession." "Personal spending surprised on the downside at -0.1% MoM in May vs. +0.2% MoM prior and +0.1% MoM expected. The Treasury market is taking direction from the consumption figures over the inflation data - a notable tone shift that implies growth concerns are mounting." (This story has been corrected to fix the month of the indicator to May, not April, in paragraph 1)
Bloomberg
18 hours ago
- Business
- Bloomberg
Economists Raise Growth Outlook for Canada as Tariff Threats Ease
Analysts boosted their forecasts for economic growth in Canada this year as fears of a drawn-out trade dispute with the US fade. Economists surveyed by Bloomberg say output will rise at a 1.4% annual pace in 2025, up from 1.2% expected last month. At that rate, Canada's economy would trail only the US among Group of Seven countries.
Bloomberg
20 hours ago
- Business
- Bloomberg
Canada Economy Set for Contraction in Second Quarter
The Canadian economy is on track for a modest decline this quarter, yet isn't deteriorating as fast as some economists feared. Advance data showed industry-based gross domestic product shrank 0.1% in May, matching April's 0.1% decline, Statistics Canada said Friday.
