US ISM Manufacturing Stays in Contraction in May as Trade Rows Keep Outlook Uncertain, Causing Supply Chain Chaos
–ISM Manufacturing Index at 48.5 Vs. 48.7 in April, Below Consensus at 49.1–ISM New Chair Spence: Agree with Predecessor Fiore that US Economy Not Yet in Recession but PMI Moving in That Direction–Spence: Manufacturing Sector Will Continue Struggling Until There is More Certainty Over US Trade Policy–Spence: Layoffs Main Option for Firms as They Reduce […]
TRANSCRIPT: Fed’s Powell Says Wait and See Effects of Tariffs on Inflation, Unemployment
WASHINGTON (MaceNews) – Federal Reserve Chair Jerome Powell Wednesday said in several different ways the Fed has to wait and see whatever effects on inflation and unemployment come from whatever the ultimate tariff rates are imposed on China and other countries – and beyond that, he said very little more. A transcript of the post-FOMC […]
FOMC Stands Pat, Sees Risks Up for Both Unemployment, Inflation
WASHINGTON (MaceNews) – The Federal Open Market Committee Wednesday, as expected, decided to maintain its policy rate and the only notable addition to the policy statement was that the Fed sees “the risks of higher unemployment and higher inflation have risen.” The policy statement follows: Although swings in net exports have affected the data, recent […]
FED’S BEIGE BOOK: Analysts See ‘Pre-Downturn’ Assessment of Tepid Economy Coast to Coast
WASHINGTON (MaceNews) – The Federal Reserve’s latest “Beige Book” survey Wednesday of economic conditions in all 12 Fed Districts reflected widespread uncertainty because of shifting trade policy, softening consumer spending and worsening outlooks that hinted at an economy on the precipice of a downturn. The following is the national summary and District-by-District snapshots from the […]
Japan Seeks to Tide Over Trade War by Shoring Up Consumption, Keeps Gradual Economic Recovery View Despite Mixed Business Sentiment, Rising Inflation Risks
By Max Sato (MaceNews) – Japan’s government maintained its cautiously optimistic assessment for the eighth straight month, saying the economy is expected stay on a “modest recovery” track, but highlighted the growing uncertainty around the world triggered by the protectionist U.S. trade policy under President Trump. In its monthly report for April released Friday by […]
UPDATE: TARIFFS STATE OF PLAY: AS DUST SETTLES FOR NOW, BEHEMOTHS CHINA AND USA FACE OFF
WASHINGTON (MaceNews) – As U.S stocks rocketed up spectacularly Wednesday after President Trump’s pivot on tariffs, the battle of titans – the USA and China – emerged as the main event for months to come. At an afternoon White House event, President Trump said, “Somebody had to do it,” vs. China. A more skeptical former […]
US TARIFFS STATE OF PLAY: Pres Trump Imposes Massive Global Tariffs Likely to Cause Widespread USA Price Hikes
WASHINGTON (MaceNews) – Amid much pessimism about severe economic domestic consequences, President Trump Wednesday imposed massive tariffs on several dozen countries including China and the European Union and a blanket 10% levy on all the rest. The Rose Garden announcement shook stock futures into large negatives while interest rates maintained lows last hit in October. […]
StL Fed’s Musalem: Must Lean Against Inflation If Expectations Become Unanchored
– May Have To Leave Rates Unchanged Longer Or Hike Rates If Inflation Worsens By Steven K. Beckner (MaceNews) – Although downside risks to the labor market have increased, so have upside risks to inflation and inflation expectations, and such a combination could create a difficult monetary policy dilemma, St. Louis Federal Reserve Bank President […]
BofA Global Research Fund Manager Survey: Global Investor Sentiment Plunges as Macro Pessimism Surges
–US Equity Allocation Sees Biggest Monthly Drop on Record By Vicki Schmelzer NEW YORK (MaceNews) – A drop in expectations that the U.S. economy will outperform and rising worries about the global economy prompted a “bull crash” in global investor sentiment in March, according to BofA Global Research’s monthly fund manager survey, released Tuesday. When […]
TARIFFS STATE OF PLAY: Trump Tariffs Go Global – A Small Start Compared to What’s Coming
WASHINGTON (MaceNews) – The new worldwide 25% U.S. tariffs on steel and aluminum Wednesday – with no exemptions – piled atop the now 20% levied on China goods, 22 days away from the start of the nation’s far bigger experiment in confrontational trade policy, “reciprocal tariffs.” As expected, retaliatory tariffs also began to accumulate, first […]