US Fed chief says trade and global growth remain big risk factors

25 basis point cut priced in. Will he go further

Gold rallied and US equity markets hit record highs.

But since criticism of the Fed by Mr Trump in May, both investors and the central bank have begun shifting their stance, with markets now expecting a cut of at least a quarter of a percentage point when Fed policymakers meet at the end of the month.

- United States dollars supported by inflation surprise but data won't prevent Fed cuts.

"They raised rates too soon, too often, & tightened, while others did just the opposite", Trump tweeted Friday, adding that the Fed "doesn't have a clue!"

President Trump has repeatedly argued that the USA economy would be growing faster if the Fed lowered interest rates.

"I would argue for a 25-basis point cut at the next meeting", Bullard told reporters on Wednesday.

Stocks notched fresh highs - with the S&P briefly topping 3,000 for the first time ever - after the Fed signaled it's poised to cut interest rates for the first time in more than a decade, citing worries over trade tensions and growth.

The dollar, however, trimmed losses against the yen and euro earlier on Thursday after data showed US underlying consumer prices rose 0.3% in June, the most in almost 1-1/2 years, with solid gains in the costs of a range of goods and service.


The headline June producer price index (PPI) is expected to register as flat month-over-month for June, according to consensus economists polled by Bloomberg, retreating from a 0.1% month-over-month increase in May.

"There's no immediate need to move rates in either direction at this point in my view", Federal Reserve Bank of Philadelphia President Patrick Harker said in an interview with the Wall Street Journal on Monday.

The Fed has kept its current benchmark overnight interest rate in a range of between 2.25 percent and 2.50 percent since December.

The Fed chair said overall growth has also "moderated", and cited the possibility that "weak inflation will be even more persistent than we now anticipate".

"Concerns about the strength of the global economy continue to weigh on the USA outlook", Mr Powell said. "What we'd like to do is take out some insurance against the possibility of a sharper-than-expected slowdown".

A man counts USA dollars in Tehran, Iran July 7, 2019.

With Fed rate cut odds climbing again, the US Dollar (via the DXY Index) has been knocked lower, keeping the threat of a major US Dollar top in place. Furthermore, Powell is set to testify for a second day.

Furthermore, while adding onto his previously mentioned thoughts about Bitcoin as having the potential to transition the USA into a new era of banking and finance, Powell also explained that he believes BTC's main utility presently is being a store of value, much like gold.

Related News:

  • Nintendo's Switch Lite offers better battery life than the Switch

    Nintendo's Switch Lite offers better battery life than the Switch

    It's coming out before the holiday season though and with sales for the original Switch tapering off, this release makes sense. The Nintendo Switch has a relatively small screen so a lot of users will be willing to upgrade to a bigger Nintendo Switch XL.
    Tommy Robinson Receives 9 Month Jail Term Over Breaching Court Reporting Rules

    Tommy Robinson Receives 9 Month Jail Term Over Breaching Court Reporting Rules

    Stephen Yaxley-Lennon, also known as Tommy Robinson, has been sentenced to 9 months in jail over contempt of court charges. Mr Cox said the latest sentencing "serves to illustrate how seriously the courts will take matters of contempt".
    Man, 22, arrested after climbing Buckingham Palace fence at 2am

    Man, 22, arrested after climbing Buckingham Palace fence at 2am

    A 22-year-old man has been arrested after climbing over the front gates of Buckingham Palace while the Queen was in residence. The Sun understands the Queen was the only senior royal sleeping at the Palace because of the refurbishment work going on.
  • Virat Kohli weighs in on the Ravindra Jadeja

    Virat Kohli weighs in on the Ravindra Jadeja

    One can not help but draw parallel with another legend of the game run out in his last ODI innings. India have always done well when their openers have done well; when they had good starts.
    Firefighters tackle blaze at Warner Bros UK studio

    Firefighters tackle blaze at Warner Bros UK studio

    A spokeswoman later stated: "The hearth at Warner Bros Studios is now out however a number of automobiles stay on web site". Firefighters are tackling a blaze which broke out late on Wednesday night at Warner Bros' studios outside London.
    Kuo: 2020 iPhones will have a smaller notch

    Kuo: 2020 iPhones will have a smaller notch

    It is a cornerstone of the Apple experience, but the whole Face ID module is rather large, so hiding it is an extremely hard task. The 2020 iPhones will feature slimmer notches and one will have a notch-less design with all-screen fingerprint authentication.
  • Australian banks, shops hit by telecoms outage

    Australian banks, shops hit by telecoms outage

    The spokesperson also said the cause of the problem is not internal but due to "one of [its] telecommunication providers". The outage has also wreaked havoc at Caltex service stations and Woolworths stores.
    Chargers' Gordon wants trade if no extension

    Chargers' Gordon wants trade if no extension

    Gordon has only played in all 16 games once in his four seasons, and has missed nine total games over his career. This is likely a small ripple in the AFC West pond given that the Chargers would be foolish to let Gordon walk.
    End of an Era: Volkswagen Ends Production of the Beetle

    End of an Era: Volkswagen Ends Production of the Beetle

    After its celebration, the final Beetle will be displayed at Volkswagen's museum in the city of Puebla, Mexico. As a side note, Wolfsburg was founded in 1938 by the Nazi regime to house the German automaker's workforce.
  • ROK raps Japan's export curb at WTO

    ROK raps Japan's export curb at WTO

    Under the current regime, Japanese exporters would require government approval before they can ship the products to Korea. Japan says the issue of forced labour was fully settled in 1965 when the neighbours restored diplomatic ties.
    NYC honors Women’s World Cup champs with ticker-tape parade

    NYC honors Women’s World Cup champs with ticker-tape parade

    Even before the World Cup ended, more than 50 members of Congress signed a letter sent by the Democratic Women's Caucus to U.S. The team's incredible journey ended nearly a month later on July 7, 2019, with a thrilling 2-0 victory against the Netherlands.
    Spanish judge rules 43-year-old is son of singer Julio Iglesias

    Spanish judge rules 43-year-old is son of singer Julio Iglesias

    Iglesias is known for his romantic ballads and a prolific love life that has always been fodder for tabloid headlines. The singer's defence team argued that the trial should not take place since the case had already gone to court.


Most liked

Pooja Batra - Nawab Shah marry in a hush-hush traditional ceremony
Whereas nawab Shah was seen in films like Don 2 , Bhaag Milkha Bhaag , Dilwale and Tiger Zinda Hai and TV serial Shaktimaan . On the eid, Nawab, on Instagram , shared their relationship with Pooja and obtained his relationship. "Eid Mubarak soulmate.

Valve introduces new Steam Labs features around discoverability
Steam Labs makes available experiments and tests to Steam users who want to participate. But you can play with the settings as well to fine-tune things.

Rohit Sharma thanks fans with a heavy heart after World Cup exit
After the restart, the Kiwis added 28 runs to give India a challenging total of 240 on a wicket that was two-paced in nature. Hours after the heartbreaking exit from the tournament, Rohit Sharma took to Twitter to leave a lovely message for the fans.

Full Call of Duty: Modern Warfare Multiplayer Gameplay Reveal Coming August 1
Infinity Ward is showing off the rest of its multiplayer offerings in a livestream on Twitch at 10 a.m. on August 1 . In Gun Game, players rotate through a series of weapons; getting a kill with each one before moving on to the next.

R. Kelly Arrested on Federal Sex Crime Charges
The plaintiff in that lawsuit is one of four people who have accused Kelly of criminal sexual abuse in a separate criminal case. In an intense interview with Gayle King for CBS This Morning in March, Kelly spoke out on the allegations against him.

Lawmakers call for President Trump's labor secretary to resign amid Epstein investigation
Barr joined the law firm Kirkland & Ellis in 2009, which had represented Epstein during a separate case against him in 2008. That deal Epstein secretly cut allowed him to avoid federal prosecution for almost identical allegations.

Latest Pokemon Sword and Shield trailer shows off new Pokemon and Gigantamax
We know of two exclusive gym leaders right now, but the language on the games' website seems to suggest more could be coming. Gigantamax pokemon will be monstrously big, have increased stats, and will be able to use exclusive Gigantamax moves.

Kanye West turns to Star Wars for low-income housing design
According to the Forbes feature, West's current project includes designing his envisioned housing units for low-income classes. I for one will be following this story closely and will be excited when this becomes a reality.

Morgan lauds England's ODI revival after reaching Cricket World Cup final
By the time Australia broke through, with Bairstow trapped lbw by Mitchell Starc, England were over half-way to their target with almost 32 overs remaining.

French study links sugary drinks to cancer
During the study's follow-up period, a total of 2,193 first cases of cancer were diagnosed, at the average age of 59 years. The study is observational, so it is not possible for the researchers to state that sugar is a cause of cancer .

Elon Musk's SpaceX wins NASA contract for mission to study black hole
The engineers of IXPE mission assumed that the aircraft will be launched on Northrop Grumman's air-dropped Pegasus XL rocket. The IXPE rocket is created to fly at a distance of 540 kilometers to the equatorial orbit at an inclination of 0 degrees.

7-Eleven giving away free Slurpees on 7/11
Thursday is July 11, and convenience store chain 7-Eleven is celebrating its namesake day with free Slurpees for everyone. The free Slurpee deal today is available in one specific size - small - and there is no purchase required whatsoever.

French Senate approves tax as USA opens digital levy probe
The move opens a new trade dispute with a European ally and comes as theFrench Senate prepares for a final vote on the tax on Thursday.

Does Amazon Prime Day deliver for investors? It's complicated
If you're not a Prime member by the time of the concert, you'll be able to watch it for a limited time the next day on-demand. It is said that this year's Prime Day sale will be the company's longest so far i.e. 12 hours longer than last year.

Boult keen for another shot at Australia in World Cup final
Their opponents in this semi-final have been consistently better in this World Cup and beat England comprehensively two weeks ago. Australia's David Warner walks off for nine during the 2019 Cricket World Cup second semi-final between England and Australia.