The US Federal Reserve Board’s usually cautious chairman says Trump’s tariffs will lead to higher inflation and lower US economic growth. That won’t go down well in the White House.
Michele Bullock says the bank’s heavy-footed response to inflation weighed on the board’s mind as it made the first cut to interest rates in years.
Here’s why I doubt this small cut in interest rates will be the circuit breaker everyone was hoping for.
The discretionary retail sector is hanging out for an interest rate cut to breathe some life into moribund sales growth and shrinking margins.
No matter how much Jim Chalmers tries to find a golden thread in these bleak economic numbers,there’s no getting away from the fact consumers are scarred.
Treasurer faces questions about his ability to manage economy as public spending props up national accounts.
The Bank for International Settlements says central banks,including the Reserve Bank of Australia,need to take off their blinkers.
While markets are expecting at least one rate cut before the end of the year,RBA governor Michele Bullock and most of the big four banks disagree.
Even though prices fell in May,overall inflation has lifted to a six-month high of 4 per cent. Mortgage holders face a nervous wait for the Reserve Bank’s next meeting.
The Australian sharemarket pared back its early sharp losses,but mining heavyweights dragged the local bourse into negative territory.