Fed holds rates steady, says tariffs will slow economy
The nation’s central bankers didn’t grow up in the circus, but they’re...
The nation’s central bankers didn’t grow up in the circus, but they’re walking a tightrope nonetheless. Amid pressure on all sides from the anticipated effects of President Trump’s tariffs, the Federal Reserve held interest rates at 4.25%–4.5% yesterday, as expected, and ramped up warnings about the nation’s economic trajectory.
“We can afford to be patient as things unfold,” Federal Reserve Chair Jerome Powell said when asked by an Axios reporter why the Fed was waiting to make a policy decision until hard data caught up with soft data—a gap known as the “Vibecession.”
Though he’s waiting to see what happens, Powell is concerned for the future: “If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment,” he said.
Pakistan vows to respond after India launches airstrikes
Pakistan said 31 people were killed by the ...
Pakistan said 31 people were killed by the airstrikes, which India said targeted nine areas where terrorist attacks had been planned in retaliation for a terrorist shooting in Kashmir last month that killed 26 tourists. Pakistan called the strikes an act of war, and Prime Minister Shehbaz Sharif’s office said the country “reserves the right to respond, in self-defense, at a time, place, and manner of its choosing.” The confrontation has stoked fears of a potential escalation in conflict between the two nuclear-armed countries.
China and the US to talk trade in Switzerland this weekend. In...
China and the US to talk trade in Switzerland this weekend. In the first high-level trade discussions between the two countries since President Trump introduced 145% tariffs on Chinese goods and China retaliated with its own duties, Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will sit down with their Chinese counterparts. Going into the meeting, the two sides are far apart, and President Trump said yesterday he wouldn’t lower tariffs in advance. Bessent said, “The current tariffs and trade barriers are unsustainable, but we don’t want to decouple. What we want is fair trade.” China, which has cast the US as a bully in the fight, cautioned the US against using the talks as “a smoke screen to continue coercion and extortion.”
The conclave to elect the new pope began yesterday, but so far, there’s only been black smoke coming from the chimney. And like the rest of us, some cardinals watched the movie Conclave to help get a handle on papal politics before it began.
President Trump tapped best-selling author and wellness influencer Dr. Casey Means, whom he described as having “impeccable ‘MAHA’ credentials,” to be Surgeon General, after his first nominee, Fox News contributor Dr. Janette Nesheiwat, withdrew over questions about her medical training.
Uber reported Q1 revenue that was lower than expected, though still 14% higher than the same quarter last year.
Three former Memphis police officers were found by an out-of-town jury to be not guilty of all state charges, including second-degree murder, in the fatal beating of Tyre Nichols during a traffic stop in 2023.
Oil settles lower as hopes dim for US-China trade and supply worries ease
Reuters) - Oil prices fell by more than $1 a barrel on Wednesday as investors...
Reuters) - Oil prices fell by more than $1 a barrel on Wednesday as investors doubted that upcoming U.S.-China trade talks will result in a breakthrough, while hopes for an Iran-U.S. nuclear deal eased supply worries.
Brent crude futures settled down $1.03, or 1.66%, at $61.12 a barrel while U.S. West Texas Intermediate crudelost $1.02, or 1.73%, closing at $58.07 a barrel.
The U.S. and China are due to meet in Switzerland, which could be the first step toward resolving a trade war disrupting the global economy.
The trade talks between the world's two largest economies come after weeks of escalating tensions. Duties on goods imports between the countries have soared well beyond 100%.
U.S. stocks close higher after choppy trading in wake of Fed’s rate decision
U.S. stocks finished higher on Wednesday after the Federal...
U.S. stocks finished higher on Wednesday after the Federal Reserve decided to leave interest rates unchanged, emphasizing there's still no hurry to lower them as the U.S. economy is in relatively solid shape.
According to preliminary data from FactSet, the Dow Jones Industrial Average rose over 280 points, or 0.7%, to end near 41,113.
The S&P 500 was up 0.4%, to finish at around 5,631.
The Nasdaq Composite advanced 0.3%, ending near 17,738.
On Wednesday, the Federal Open Market Committee held its interest rates between 4.25% to 4.5%, as widely expected. But at the post-decision press conference, Fed Chair Jerome Powell repeatedly said the central bank has to be patient and not make any moves "preemptively."
According to the CME FedWatch Tool, futures traders have, in turn, dialed back expectations for an interest-rate cut in June, possibly because of Powell's insistence on standing pat for now.
However, the Fed rate decision and Powell's press conference were not the only factors moving the stock market on Wednesday. Just moments before the Fed's announcement, President Donald Trump said he is not pulling back his 145% levies on Chinese products to get the world’s second-largest economy to the negotiating table.
Earlier, Wall Street was cheering the news that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer plan to meet with their Chinese counterparts in Switzerland this weekend, hinting at a possible de-escalation in trade tensions between the global superpowers.
