Tag: fed

The renewed escalation in military operations between Iran and the United States, together with the release of minutes from the latest FOMC meeting that were more hawkish than expected, keeps alive the possibility that the Federal Reserve will raise interest rates before the end of the year. Attention will now turn to President Trump’s reaction,…

U.S. growth shows no sign of stopping, but with tensions in the Gulf easing, energy prices could fall back quickly, giving the Federal Reserve room to buy time on rates. Meanwhile, consumer prices in Europe are rising less than expected and remain below 3%. The ECB is therefore moving into stand-by mode on rates. EUR/USD…

The first Fed meeting of the Warsh era ended with no action, but with an FOMC split down the middle. Markets interpreted the central bank’s stance as more hawkish and now expect a rate increase by year-end, helping explain the dollar’s strength. Tensions in the Gulf are easing, with energy prices falling—an encouraging development for…

Currency markets are drifting as investors wait for encouraging news on the geopolitical front, only to be jolted on Friday by a sharp selloff in technology stocks. Trump continues to project confidence that a deal with Iran can be reached, but the U.S. economy is running hot, calling into question his desire to cut interest…

The Fed’s new leadership is being forced to manage a renewed flare-up in inflation, which came in at 3.8% in April, a level that will prevent the central bank from easing the cost of money. The ECB also looks ready to move on rates as early as this month. EUR/USD, meanwhile, remains stuck in a…

The Warsh era at the Fed begins with strong macroeconomic data from the U.S., but also with rising inflation and Powell’s final minutes confirming a central bank more hawkish than expected. Bets on rate cuts have been wiped out, while in Europe consumer prices are also climbing by 3%, prompting the ECB to prepare for…

Between hopes for a truce and buoyant markets, the dollar remains weak, confirming that when calmer conditions appear to return to markets, the greenback loses ground. Meanwhile, the Warsh era begins in the U.S., with the new Fed chair taking office. Will he be able to preserve the Fed’s independence? In Europe, interest rates appear…

While the Strait of Hormuz remains sealed, sending oil prices sharply higher, the change at the top of the Federal Reserve, with Powell chairing his final meeting, left rates unchanged but appears to ensure a degree of independence for the board at least until 2028, given Powell’s continued presence as a voting member. That factor…