Trump's Tariff Threat, Inflation Dynamics And Federal Reserve Updates: This Week In Economy
The past week was a rollercoaster ride in the world of economics and finance. From President Donald Trump’s tariff threats against Russia to the Federal Reserve’s cautious stance amidst rising inflation, there was no shortage of headlines.
Here’s a quick recap of the top stories that made waves over the weekend.
Trump’s Tariff Threat Draws Criticism
President Donald Trump’s recent threat of imposing a 100% tariff on Russia if no peace deal is reached in Ukraine within 50 days has been met with criticism and mockery from leading economist Justin Wolfers. Wolfers pointed out that the U.S. already has sanctions on Russia, making any tariff figure irrelevant for Moscow at this point.
Trump’s Rate Cut Calls Clash With Rising Inflation
President Trump’s calls for aggressive rate cuts collided with economic reality as June’s rising inflation dynamics offered a temporary win for Federal Reserve Chair Jerome Powell’s cautious stance. June’s headline inflation accelerated to 2.7% year over year, up from 2.4% in May, marking the highest reading since February.
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June Inflation Report Fuels Fed Rate Cut Hopes
The June inflation report brought relief to Wall Street as the headline Consumer Price Index (CPI) matched expectations, while core inflation came in slightly cooler than forecast, reviving optimism for interest rate cuts later this year.
Federal Reserve’s Beige Book Reveals Tariff-Driven Profit Squeeze
The latest Federal Reserve study of economic conditions reveals that businesses that did not raise prices or pass on the impact of tariffs to their customers are likely to take a hit on their profit margins.
Powell Defends $2.5 Billion Fed HQ Overhaul
Federal Reserve Chair Jerome Powell defended the central bank’s multi-billion-dollar renovation of its Washington, D.C. headquarters, emphasizing that the project is being managed responsibly, with no extravagant features or misuse of public funds.
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This story was generated using Benzinga Neuro and edited by Ananya Gairola
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Posted-In: Economics
