Trump's early Fed chair pick weakens dollar

 

The US dollar dropped to a three-year low after reports surfaced that Donald Trump might announce Jerome Powell's replacement as Federal Reserve chair earlier than expected, possibly as early as this summer. Trump has repeatedly criticized Powell for not lowering interest rates fast enough. The early announcement could...

US New Home Sales Plummet Amid High Mortgage Rates

 

New single-family home sales in the US plummeted 13.7% in May to 623,000 units, significantly below expectations and previous averages. High mortgage rates, averaging around 7%, are cited as the primary cause, impacting affordability and buyer confidence. The increased supply of new homes, reaching a 9.8-month supply, further...

Middle East Conflict: Why No Oil Crisis?

 

Despite initial price spikes following Israel's attack on Iran, global oil prices have remained relatively stable, defying expectations of a crisis. Several factors contribute: Iran hasn't targeted oil supplies or blocked the Strait of Hormuz; oil traders are less reactive to geopolitical events after repeated false alarms; autumn's lower...

US Home Prices Cool Amid Rising Supply, Higher Rates

 

US home prices are cooling, rising just 2.7% annually in April, according to the S&P CoreLogic Case-Shiller Index, the smallest gain in nearly two years. Higher mortgage rates and increased supply are contributing factors. While prices are weakening, particularly in previously hot markets like Tampa and Dallas, they...

Powell Cautious on Inflation, Awaits Tariff Impact

 

Federal Reserve Chair Jerome Powell reiterated the Fed's commitment to controlling inflation, emphasizing a wait-and-see approach regarding further policy adjustments. He cited strong economic growth and full employment but noted inflation remains above the 2% target, with uncertainty surrounding the impact of tariffs. Powell's cautious stance may further...

Home Sales Rise Slightly Despite High Mortgage Rates

 

Existing home sales inched up 0.8% in May to a seasonally adjusted annual rate of 4.03 million units, defying predictions of a 1% decline. While sales were stronger in the Northeast and Midwest, they fell in the West. High mortgage rates remain a significant factor, but increased housing...

UK Unveils 10-Year Plan to Boost Industry, Cut Energy Costs

 

The UK government unveiled a 10-year industrial strategy aimed at boosting economic growth. A key component is a plan to lower energy costs for over 7,000 businesses by up to 25%, achieved by exempting them from certain green energy levies. This British Industrial Competitiveness Scheme will cut costs...

Energy Emergency Alert Issued Amid Extreme Heat

 

PJM Interconnection, serving 20% of Americans, declared an energy emergency alert due to soaring electricity demand. Extreme heat is driving power consumption to a 14-year high, potentially exceeding 160 gigawatts on June 23rd. This surpasses the peak since 2009, prompting a 'maximum generation emergency' to bolster power supplies...

Economist: Trump's Tariffs Could Be a Global Victory

 

Uncertainty remains over President Trump's tariffs. Apollo Global Management's chief economist, Torsten Sløk, proposes a scenario where tariffs remain at 30% on China and 10% on others, but countries are given a year to reduce non-tariff barriers. This would ease uncertainty, boost the economy, and generate $400 billion...

Asia-Pacific Markets Rise Amidst Geopolitical Tensions

 

Asia-Pacific markets mostly rose Friday following China's decision to maintain benchmark interest rates. Hong Kong's Hang Seng Index increased by 1.15%, and mainland China's CSI 300 added 0.24%. Japan's Nikkei 225 saw a slight uptick, while South Korea's Kospi index surged, crossing 3,000 for the first time in...