The Marriner S. Eccles Federal Reserve Building in Washington, DC, United States, on February 27, 2024.
Ratner Bloomberg Gety pictures
Most of the independent central bank is seen by most (including this newsletter) as the basis for the job economy. Officials direct the economy by calibrating the standard interest rate on which bank loans and mortgages are based, among other debts.
Companies and consumers, in general, such as low interest rates because the cost of borrowing is cheaper. The first is motivated by expansion and investment, which in turn tends to increase income and spending between the latter. But such behavior can heat the economy, causing prices to decline.
The repeated calls of US President Donald Trump to the President of the Federal Reserve Jerome Powell to reduce interest rates may make companies and people happy – at the expense of leaving inflation fading again. The factor in the Trump tariff, which is taxes on imports and thus increasing prices mainly, and inflation can be getting shots in the arm.
For this reason, central bankers tend to work independently of the government. Administration that aims to satisfy the population may reduce rates despite high inflation, which leads to more economic difficulties.
They are relief markets in the United States and Europe were on a break for the great Friday holiday when Trump made his comments.
What you need to know today
Trump calls Powell again to cut prices
“If we have the Federal Reserve Speaker, he understands what he was doing,” said US President Donald Trump on Friday. Useful interest rates will decreasealso. “The White House said on Friday that officials reside whether they could Remove the Federal Reserve Chair. This is it Not the first time Trump criticized Powell’s approach to American monetary policy.
The increasing rejection of Trump’s economic dealings
According to CNBC survey of 1000 American, 55 % of the respondents refused With Trump’s dealing with the economy, it was the first time in any CNBC reconnaissance survey of the economy while the president was. More Americans now believe that the economy will get worse than any time since 2023, and they are more pessimistic about the stock market, according to the survey results.
China keeps interest rates fixed
The Monday Asia and Asia Markets have been mixed. Japan Nikki 225 It lost about 1.3 %. However, the Chinese CSI 300 in China added about 0.3 % as the Popular China Bank It maintained its essential loan. LPR is currently 3.1 % and 5 years old is 3.6 %. The economists of Reuters expected this result, indicating that PBOC gives priority to the stability of the yuan to motivate the economy.
Beijing “mutual measures” pledges
Chinese Ministry of Commerce to caution On Monday that Beijing firmly Any party that reachs an agreement is opposed at the expense of China’s interests. If this happens, China will not accept it and will be taken with firmly mutual counter -scales, ”according to the translation of CNBC. The Trump administration is It is said that he is planning to use customs tariff negotiations to pressure American partners In reducing their dealings with China.
American economic activity may be “fall” in the summer
The American economy can suffer High level of activity now Chicago Austan Fuolsby President said on Sunday that shoppers and companies are storing goods before the tariff began. “The activity may seem artificially high in the first, then by summer, it may fall – because people bought everything.” Volsby said that the most affected sectors include the auto and electrical components industry.
Executive order to reform the Ministry of Foreign Affairs
The Trump administration can be offered soon Comprehensive changes to the US State DepartmentAccording to a 16 -page executive order obtained by CNBC. If it is aged, the matter will close the American embassies throughout South Africa, eliminating offices that work on issues such as democracy and human rights, as well as international organizations such as the United Nations.
((Pro) The profits may be resolved to decomposition of customs tariffs as a center
Market tariffs may be subjected to Trump’s tariff – but do not calm down – this week, according to the strategies. The investor’s attention will turn into First quarter profit reportswith Timing and alphabet The announcement of their performance on Tuesday and Thursday, respectively.
Finally …
US President Donald Trump meets Japanese Prime Minister Shigro Ishiba at the White House in Washington, the United States, February 7, 2025.
Kent Nishimura Reuters
Trump’s tariff pushes Asian partners to the weight of investment in the huge Alaska Energy Project
Alaska has long sought to build a 800 -mile pipeline that ultimately cools the gas in an export liquid to Asia. The project, which has an amazing price of $ 40 billion, has been stuck on the drawing board for years.
Alaska LNG, As is known to the project, it offers new signs of life – as Trump promotes the project as a national priority. US Treasury Secretary Scott Bessin said earlier this month that the naturally texture natural gas project can play an important role in commercial negotiations with South Korea, Japan and Taiwan.
“We are thinking about a large liquefied natural gas project in Alaska that South Korea and Japan (and) Taiwan are interested in financing and taking a large part of infiltration,” Pisent told reporters on April 9.
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