The Building of the Federal Reserve Marrner S. Eccles in Washington, DC, USA, on February 27, 2024.
Morah Ratner | Bloomberg | Getty images
The majority (including this newsletter) sees an independent central bank as the basis of a functional economy. Officials direct the economy calibrating the reference interest rate in which there are bank loans and mortgages, among other debts.
Corporations and consumers, in general, such as low interest rates because the cost of loans is cheaper. The first is encouraged to expand and invest, which, in turn, tends to increase income and spending among the seconds. But such behavior can overheat the economy, which makes prices fire.
The repeated calls of the president of the United States, Jerome Powell, the president of the Federal Reserve, to reduce interest rates, companies and happy people, at the cost of letting inflation work again. Take into account Trump’s tariffs, which are taxes on imports and, therefore, increases in fundamental prices, and inflation could be receiving two shots in the arm.
That is why central bankers tend to operate independently of the government. An administration that aims to please the population could in spite of high inflation, which leads to more economic difficulties.
It is a help market in the United States and Europe that were at a break for Good Friday’s holidays when Trump made his comments.
What you need to know today
Trump again requires Powell to reduce rates
The president of the United States, Donald Trump, said Friday that “if we had a Fed president who understood what he was doing, interest rates would also decrease.” The White House said Friday that officials are evaluating that those who can remove the Fed chair. This is not the first time that Trump criticizes Powell’s approach to the monetary policy of the United States.
Growing disapproval or economic management of Trump
According to a CNBC or 1,000 American survey, 55% or respondents disapproved the management of the economy by Trump, the first time in any CNBC survey that only has negative in the economy while the president. More Americans now believe that the economy will make it worse at any time since 2023, and are very pessimistic about the stock market, according to the results of the surveys.
China keeps stable interest rates
Asia-Pacific markets mixed on Monday. Japanese Nikkei 225 Lost approximately 1.3%. However, the CSI 300 of Continental China added around 0.3% since the Popular Bank of China kept its primary loan rates without changes. The 1 -year LPR is currently 3.1% and the 5 -year rate is 3.6%. The economists surveyed by Reuters expected this result, which suggests that the PBOC is prioritizing Yuan’s stability to stimulate the economy.
Beijing votes ‘reciprocal countermeasures’
The China Ministry of Commerce warned on Monday that Beijing firmly opposes any party that reaches an agreement at the expense of China’s interests. If this happens, China will not accept it and take reciprocal countermeasures, “according to a CNBC translation. According to the reports, the Trump administration plans to use Whance negotiations to press the partners of the United States to reduce their deals.
The economic activity of the United States could “fall” in summer
The economy of the United States could be experiencing a high level of activity now, since buyers and companies are supplied in the goods before the tariffs are activated, the president of the Fed of Chicago said on Sunday, Austan Goolsbee. “The activity may seem artificial in the initial, and then for the summer, it could fall, because people have bought everything.” The most affected sectors include the automotive industry and the electrical components, Goolsbee said.
Executive order to review the State Department
The Trump administration could soon implement radical changes in the United States Department of State, according to an executive order of a 16 -page draft obeyed by CNBC. If promulgated, the order will close the US embassies in southern Africa, it would eliminate offices that work on issues such as democracy and human rights, as well as international organizations such as the United Nations.
[PRO] Profit can move rates as a approach
The market turns due to Trump tariffs could be subjected, but not completely diminished, this week, according to the strategists. Investor’s attention will resort to the first quarter profit reports, with Tesla and Alphabet Announcing their performance on Tuesdays and Thursdays, respectively.
And finally …
The president of the United States, Donald Trump, meets with Japan’s Prime Minister, Shigeru ishiba at the White House in Washington, USA, on February 7, 2025.
Kent nishimura | Reuters
Trump’s tariff
Alaska has long sought to build an 800 mile pipe that would be possible liquid gas for export to Asia. The project, which has an internal price that exceeds $ 40 billion, has bones stuck on the drawing board for years.
Alaska LNG, as the project is known, shows new signs of life, with Trump promoting the project as a national priority. The United States Secretary of the United States, Scott Besent, said at the beginning of this month that the Liquefied Natural Gas project could play an important role in commercial negotiations with South Korea, Japan and Taiwan.
“We are thinking of a great LNG project in Alaska that South Korea, Japan [and] Taiwan is interested in financing and taking a substantial portion of taking the shot, “Besent told journalists on April 9, saying that such agreement would help fulfill Trump’s goal to reduce the United States trade deficit.
