Economic slowing in the US is still on the cards, Fed says

In the chairman of the federal reserve system Jerome Powell Press conference after meetingThe topic of tariffs – in particular, their impact on prices – was repeated.

“Everyone I know is predicted by a significant increase in inflation from tariffs in the coming months because someone has to pay for tariffs,” Powell said. “And some of them will fall on the end of the consumer.”

Of course, recent economic data was optimistic, suggesting that the US economy was able – and can still avoid tariffs in the mostly intact.

In May, better than expected 139 000 jobs were added And the unemployment rate was unchanged at 4.2%. Consumer feelings in early June According to Michigan’s poll, it was much more optimistic than the forecast. And, most importantly, most importantly, Inflation in May – Based on the Consumer Price Index – marked by only 0.1% per month, lower than calculated.

But this string of positive data can thank the slow process, through which the tariffs are moving in the economy.

“It will take some time to make the tariffs make it through the distribution chain to the final consumer. A good example of what will be sold for sellers today may have been imported a few months ago before tariffs were imposed. So we start seeing some consequences and we expect to see more in the coming months.”

And despite the fact that nowadays the Fed officials “do not see the signs” of the US economy, Powell acknowledged that the growth will slow down “after all.” In other words, Stagflation – a toxic mix of higher prices and slow growth – can be the opportunity in the following months.

The song “I got the summer in my head“Viral went in 2022.” I got stagflation on your mind, “it can become the Fed – and the market columnist” – Earworm this summer.

The US Central Bank has rates, seeing two cuts
The US Federal Reserve on Wednesday is preserved Interest rates in range from 4.25%-4.5%Where it was from December. Along with the decision, the committee noted, through it carefully watching the “point section”, that two cuts by the end of 2025 are still on the table. Earlier on Wednesday, President Donald Trump said calling it “stupid.”

Hiking that falls inflation and reduce growth forecasts
Inflation in the United States, measured according to the cost of personal consumption prices, will grow 3%in 2025, according to the updated Fed forecast. In March, the Central Bank hoped that PCE reached 2.8%. PCE came in Just 2.1% in April. The Fed also sees that this year economic growth slows down to 1.4%, which is 1.7%compared to an earlier estimate. In combination, both forecasts indicate Early signs of stagflation.

Markets in the US but fall into Asia
American stocks hovering around a flat line on Wednesday. A S&P 500 slipped 0.03%, Dow Jones Industrial Medium closed 0.1% down but Nasdaq Composite increased by 0.13%. Oil prices also changed little. Asian-Pacific markets fell on Thursday. Hong Kong Hang the Index Lost up to 2%, leading declines in the region. In Japan’s stock Nippon Steel After the firm has completed the acquisition of US Steel, more than 3%popped up.

Iranian Change Change “Not Official Purpose”: Duke
Israeli President Isaac Duke stated Dan Murphy on Wednesday that the regime was changing in Iran “Not the official purpose of ours”, And the goal was to “remove the Iranian nuclear program”. Duke, who accused Tehran of “hurrying to the bomb” added that “a change (regime) could also bring peace in the region.” Asked if there is a diplomatic ramp available for de -escalation of the situation, he replied: “Actually a lot of rear channel.”

Trump says he has not decided on Iran’s blows
A second time in two days Trump on Wednesday met with a national security team at the White House Among the conflict of Israel and Iran. The closed door collected when Trump insisted that he had not yet decided whether the US strike on Iran should be ordered. On the same day, US Ambassador to Israel Mike Hakababi said the evacuation and trips on cruise ships were organized for American citizens seeking to leave Israel.

(Pro) Interest in investors in developing markets
Trump has been developing in economics such as Vietnam and India, especially hard with its “mutual” tariffs. The clock disables at a 90-day pause Trump on these tariffs-Ale institutional investors actually increasingly passionate about new markets According to the latest poll of the head of the Bank of America.

Trump and Fashion India shared over the role of the US in ceasefire in Pakistan

During Tuesday by phone between Indian Prime Minister Narendra Modi and TrumpThe former expressed his disappointment with repeated statements by the US president that he played a significant role in brokering a Due to the cost of the hall between the two nuclear armed countries.

“The Modi Prime Minister firmly stated that India does not accept and will never take mediation. India has a complete political consensus,” said Foreign Minister Vicer Missri in A, statement.

Modi “clearly conveyed” to Trump that the US did not play a role in mediation between India and Pakistan and denied any discussion of the trade transaction, Missri said.

A 35-minute call was initiated by Trump, he added.