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If Trump interferes in the Fed, there may be shock

On February 27, 2024, Marriner S. Ekles Federal Reserve in Washington, Colombia District.

Sea Ratner | Bloomberg | Gets the image

Most independent central banks are considered by the majority (including this newsletter) as the basis of the functional economy. Officials manage the economy, calibrating the interest rate, which bank loans and mortgage loans, among other things, are based.

Corporations and consumers are usually like low interest rates because the cost of borrowing is cheaper. The first is stimulated to expand and invest, which, in turn, seeks to increase profits and costs. But this behavior can overheat the economy, causing the prices to be shot.

U.S. President Donald Trump’s repeated calls for the chairman of the federal reserve system Jerome Powell reduce interest rates that can make businesses and people happy – the price to inflation again. Trump tariff factor, what import taxes and thus a fundamental increase in prices, and inflation can get two shots in the hand.

That is why the central bankers seek to act regardless of the government. The administration that seeks to please the population can reduce rates, despite high inflation, which will lead to further economic difficulties.

These are the markets of assistance in the US and Europe on the break on the Good Friday holiday when Trump made his comments.

What do you need to know today

Trump again calls the Powell to reduce the rates
US President Donald Trump said on Friday that “if we had the chairman of the Fed who realized what he was doing,
Interest rates will declinealso ‘. The White House said on Friday that officials evaluate whether they could Remove the chair -stirring. It means Not the first time Trump criticized the Powell’s approach to the US CONDERATION policy.

Grows upsetting the economic treatment of Trump
According to a CNBC 1000 Americans poll, 55% of respondents did not approve Taking into account the Trump economy, for the first time in any CNBC poll that it was pure negative for the economy during the president. Currently, more Americans believe that the economy will become worse than any time since 2023, and they are sharply more pessimistic about the stock market, according to the poll.

China supports interest rates stable
Asia-Pacific markets were ambiguous on Monday. Japan Nikkei 225 lost approximately 1.3%. However mainland Chinese CSI 300 added about 0.3%as the People’s Bank of China Detained their credit rates unchanged. Currently, the 1-year LPR is 3.1%and the 5-year figure-3.6%. Economists interviewed by Reuters expected this result, which suggests that the PBOC prefers Yuan’s stability about stimulating the economy.

Beijing promises “mutual countermeasures”
Ministry of Commerce in China prevent on Monday that in Beijing firmly opposes any sides that concludes a deal at the expense of China’s interests. If this happens, China will not accept it and will decisively accept mutual counter -stations, “according to CNBC. Trump administration has As reported to reduce their communication with China.

Economic activity in the US may “refuse” in the summer
The American economy may feel Increased activity level now As buyers and enterprises accumulated goods before the tariffs started, Chicago President Ostan Gulsby said on Sunday. “The activity may look artificially high in the original one, and then the summer can fall – because people bought it all.” The most affected are the automotive industry and electric components, Golsbee said.

Executive Order on State Department’s overhaul
Trump administration soon may deploy Sweeping changes to the US State DepartmentAccording to the 16-page executive order received by CNBC. When adopted, this order will close US embassies across South Africa, eliminates the bureau working on problems such as democracy and human rights, as well as international organizations such as the United Nations.

(Pro) Profit may suppress tariffs as emphasis
According to strategists, market hyporats from the Trump tariffs can be muted – but not quite fall – this week. Attention the investor will turn to Reports of income in the first quartersince Tesla and Alphabet Announcing its results on Tuesday and Thursday, respectively.

And finally …

US President Donald Trump meets with Japanese Prime Minister Shiger Isiba at the White House in Washington, USA, February 7, 2025.

Kent Nishimura | Reuters

Trump tariffs push Asian trading partners to weigh in investment in a large -scale energy project in Alaska

Alaska has long sought to build a pipeline for 800 miles, which eventually cooled gas into the export to Asia. The project, which has a stunning price, which exceeds $ 40 billion, was stuck on the drawing board.

Alaska SPG, As you know, the project shows new signs of life – Trump is a project as a national priority. US Treasury Minister Scott Igent said earlier this month that the draft eliminated natural gas could play an important role in trade negotiations with South Korea, Japan and Taiwan.

“We are thinking about the great project of the Mr. Alaska that South Korea, Japan (and) Taiwan is interested in financing and accepting a large part of the caroza,” Baverte told reporters on April 9, saying that such an agreement will help to reach the goal of Trump – to reduce the US trade deficit.

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