FED

In the World 23rd April 2025

Trump says Powell doesn’t know what he’s doing and calls for interest rate cuts

Link Securities | As reported by various agencies (Bloomberg, Reuters), the US president’s economic adviser, Kevin Hassett, indicated last Friday that the Trump administration was still considering whether to fire US Federal Reserve Chairman Jerome Powell. Hassett accused Powell of playing politics from his post, while US President Donald Trump, for his part, indicated that Powell did not know what he was doing, and again advocated interest rate cuts over…

In the World 24th March 2025

Fed keeps interest rates unchanged, raises inflation projections and recognises high level of uncertainty

Norbolsa | The monetary authority kept interest rates unchanged as expected after a meeting where the focus was on economic projections and the outlook for rates. Thus, the easing of recession risks, together with the maintenance of expectations of two rate cuts during the year, reassured the market, although it recognised that with the high uncertainty in the scenario, the best estimate given by the members is that they will…

World economy 10th March 2025

Atlanta Fed forecasts US GDP to contract by 2.8% quarter-on-quarter in Q1 2025, compared to 2.3% growth expected two weeks ago

Last week, nearly all sectors of the S&P 500 weakened. The financial sector lost significant ground on the 4th (-4.67%), with stocks like Citi and Wells Fargo showing very poor performance. In the technology sector, the biggest setbacks were seen in Intel (-6.2%) and Tesla (-4.5%). President Donald Trump’s tariff policies can be seen as an act of ‘throwing stones on his own roof’ as they create uncertainty, which has…

In the World 23rd February 2025

Fed minutes show main risk is possible rise in inflation due to trade policies

Norbolsa | The policy proposals of the new Trump administration were causing inflationary concerns within the US monetary authority, as reflected in the minutes of its last meeting in January. In these, the attendees reflected the main risk of the scenario as the possibility of inflation picking up and not the concern that the labour market would lose strength, expressly citing the potential effects of trade and immigration policies, the…

In the World 12th February 2025

Powell ‘in no hurry to lower interest rates further’ given good economic situation

Norbolsa | The chairman of the monetary authority, Jerome Powell, in his first appearance before Congress since his inauguration, endorsed the strength of the economy into which Trump is landing, although he avoided answering questions related to tariffs, Elon Musk, bank account security and other issues that reflect the instability of the government’s first weeks. In terms of monetary policy, he pointed out that the Fed is in no hurry…

World economy 30th January 2025

Powell’s wait-and-see stance

Juan Pedro Marín Arrese | Jerome Powell made it clear at the press conference following the Fed’s meeting that he and his colleagues are in no hurry to adjust rates. They will only move should prices undertake further progress to converge with the 2% target or the economy markedly cool down, sharply deteriorating employment. Carefully avoiding casting comments on the new administration’s policies, he emphasised the Fed’s commitment to independence…

World economy 8th November 2024

US Federal Reserve announces second interest rate cut of year

Julian Marx (Flossbach von Storch) | The US Federal Reserve has just announced the second interest rate cut of the year. It is going down by 25 basis points to a new range of 4.5 to 4.75 per cent. The Fed’s confidence in today’s interest rate move may also have been drawn from the latest ‘Beige Book’, which is considered a barometer of the US economy and is published two…

World economy 24th September 2024

Did Powell tame inflation?

J. P. Marín-Arrese | Jerome Powell boasts having curbed the recent inflation flare through resolute tightening of monetary policy. While the need to perform rate hikes seems obvious, it seems far from evident it stood as the paramount driving force. For, as is now clear, the Fed delivered negative rates throughout the inflationary bout and only undertook lukewarm efforts to drain the excess liquidity fearing the danger of a credit-crunch….

World economy 18th September 2024

Fed cuts interest rates by 0.5 points

The Fed has lowered interest rates by 0.5 points, thus aligning with the market, which anticipated a roughly 70% probability of a 50 basis point cut. As a financial institution noted this morning, “the risk for credit markets is that a 50 basis point cut may be interpreted as an emergency measure. Consequently, the gradual approach and soft landing that have benefited this type of asset could be disrupted. On…

World economy 12th September 2024

Most economists polled by Reuters believe Fed will cut rates by 25 bps at each meeting for remainder of year

Link Securities | According to a Reuters poll, a majority of economists surveyed believe that the Federal Reserve (Fed) will cut its policy rate by 25 basis points at each of the three remaining policy meetings this year (September, November and December). Moreover, only nine economists out of 101 surveyed expected a cut of half a percentage point next week, when the Federal Open Market Committee (FOMC) meets, while 92…

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