Several Federal Reserve members remain faithful to having a “wait and see” approach, despite having an uncertain outlook over the inflation problem and labor market conditions. Some also repeatedly said that tariffs and Moody’s downgrade will continue to hinder the economic situation, particularly in the inflation problem, investment, and debt piling on the US treasury bond yield. Yet, now is not a time for adjusting things that may need to seek further guidance from the data dependence.
One member, the Federal Reserve’s Bostic, signaled one rate cut this year, while the CME Fedwatch Tool stands at less than 10% on cutting the rate in the next meeting.
Russia-Ukraine Talk
Although the peace deal negotiation starts on Monday, the progress seems to stall at some point while some are raising concerns over Trump’s diplomatic efforts to end the war, as things become less certain in his speech. One thing for sure is that he has not left out the possible sanctions on Russia or fresh weapons shipments to Ukraine yet.
Israel-Gaza War
Israel has bombarded Gaza since midnight, which has killed at least 43 people in Gaza after the military ordered Palestinians in the southern city of Khan Younis to flee ahead of an “unprecedented attack”. While Israel pledged to take control over the whole of Gaza, many leaders from unions, including those in the United Kingdom, France, and Canada, threatened Israel if this continued.
US-China
China urged the United States to adjust chip export controls—particularly referring to Huawei chips—unless the US wants to face more measures taken by China.
