The Federal Reserve Chair, Powell, expressed concerns about rising downside risks to employment, warning of potential layoffs and increased unemployment. This concern stems from the July jobs report, which revealed a significant slowdown in job growth, with the three-month average reaching its lowest point since 2010 (excluding the pandemic). The report’s revisions indicated a broader market job loss, despite gains in specific sectors. Powell noted that the slowdown was larger than previously assessed, emphasizing the importance of avoiding slack in the labor market.
Read More
The Producer Price Index (PPI) unexpectedly surged in July, signaling persistent inflationary pressures in the U.S. economy. Excluding food and energy, core PPI rose sharply, with services inflation making a notable contribution. The overall PPI increased by 3.3% year-over-year, exceeding the Federal Reserve’s inflation target, leading to market adjustments. Despite this, the likelihood of a September rate cut by the Fed remained, though slightly diminished by the PPI figures.
Read More
Former President Donald Trump announced on Truth Social that he is considering a major lawsuit against Federal Reserve Chair Jerome Powell, citing the rising costs of the Fed’s building renovation project, which Trump claims is grossly mismanaged. The Fed attributes the project’s higher-than-expected costs to necessary redesigns and unforeseen issues like asbestos and soil contamination. Trump’s post also reiterated his demand for Powell to cut interest rates following the latest inflation data, as headline CPI inflation held steady while core inflation accelerated. Market expectations have shifted toward a September rate cut, although some experts express concerns about the trend of rising core inflation.
Read More
The jobs report triggered a significant surge in bond prices, hinting at a potential Federal Reserve rate cut in September. The nonfarm payrolls for July fell short of expectations, with downward revisions to May and June’s figures. The 2-year note yield plummeted, while the 10-year and 30-year Treasury note yields also declined. Further contributing to the market’s reaction, Federal Reserve Governor Adriana Kugler announced her resignation, and President Trump updated tariff rates.
Read More
July’s nonfarm payroll growth significantly underperformed expectations, with only 73,000 jobs added, a stark contrast to the anticipated 100,000. The unemployment rate also rose to 4.2%, while June and May’s job growth figures were sharply revised downwards, indicating a weakening labor market. The report prompted a market reaction, with stock futures and Treasury yields falling, leading economists to suggest potential Federal Reserve interest rate cuts in September. Job gains were largely concentrated in healthcare and social assistance, while other sectors experienced declines or minimal growth.
Read More
Senator Mullin blocked a resolution from Gallego calling for the release of documents related to Jeffrey Epstein, claiming it was political theater similar to previous investigations against former President Trump. Mullin’s actions raise questions about the need to protect Trump, as his administration failed to deliver on promises regarding the Epstein files. The argument that the investigation is invalid because former President Biden wasn’t involved is deemed weak and lazy, especially considering Trump’s own connection to the case. This obstruction is seen as a deliberate attempt to delay the process and shield Trump from scrutiny.
Read More
During a tour of the Federal Reserve headquarters renovation, former President Trump cited a significantly inflated cost of $3.1 billion, which was immediately refuted by Fed Chair Jerome Powell, who clarified the included figure encompassed an unrelated building. The visit occurred amidst Trump’s ongoing criticism of Powell and his interest rate policies, with the former president previously considering Powell’s dismissal. Despite the friction, Trump suggested he was now unlikely to fire Powell but maintained his desire for lower interest rates, while Powell reaffirmed the Fed’s independence and highlighted the renovation’s necessity.
Read More
During a tour of the Federal Reserve’s headquarters renovation project, President Trump criticized the project’s rising costs, but was corrected by Chairman Powell. Trump, who had previously attacked Powell, claimed the cost had increased to $3.1 billion, but Powell clarified that the president was including a previously completed building in his calculations. This exchange occurred amidst Trump’s ongoing public criticism of Powell and the Federal Reserve, particularly regarding interest rates and the renovation project’s budget. Despite his public attacks, Trump refrained from direct confrontation during the visit, joking about wanting lower interest rates.
Read More
During a recent Oval Office meeting, President Trump criticized Federal Reserve Chair Jerome Powell, claiming that the previous administration appointed him. However, it was actually Trump who initially appointed Powell in 2017, praising his leadership at the time. Despite these past endorsements, Trump has since heavily criticized Powell for failing to cut interest rates, even going so far as to suggest he was looking for a replacement. This shift in attitude contradicts the president’s earlier assessment of Powell and the “best” people.
Read More
Despite reports of an imminent dismissal, former President Donald Trump denied plans to fire Federal Reserve Chair Jerome Powell, although he did acknowledge discussing the possibility with House Republicans, who largely supported the move. Trump, who appointed Powell during his presidency, has criticized him for not lowering interest rates quickly enough and has also expressed the view that there is no inflation. While the president expressed his discontent with Powell’s performance, he did not rule out the possibility of firing him, but said the chances were “highly unlikely.”
Read More
John Q. Hosedrinker