Trump Calls Powell ‘Stupid,' Predicts No Rate Cut

Taarek Refaat
President Donald Trump launched a fresh attack on Federal Reserve Chair Jerome Powell on Wednesday, calling him 'stupid' and predicting that the central bank will not cut interest rates during its upcoming policy meeting.
'I don't think he's going to cut rates today. He's doing a bad job,' Trump told reporters ahead of the Federal Reserve's highly anticipated interest rate announcement.
Markets are widely expecting the Fed to hold its benchmark interest rate steady at a range of 4.25% to 4.5%, marking the fourth consecutive meeting without a change. The Federal Open Market Committee (FOMC), which sets monetary policy, has maintained this level since December in an effort to bring inflation back toward its 2% target.
In its most recent decision in May, the Fed opted to leave rates unchanged, citing ongoing progress in reducing inflation while noting the need for more data to justify a shift in policy. Recent economic indicators have shown moderating inflation, but Federal Reserve officials have remained cautious about cutting rates too soon.
Trump's remarks reflect growing political pressure on the Fed as economic issues — particularly inflation and interest rates — dominate the national conversation. Trump has been a vocal critic of Powell, whom he originally nominated as Fed chair in 2018 during his first term.
The Fed's decision and Chair Powell's post-meeting press conference are expected to offer further guidance on whether rate cuts could be considered later this year.
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Egypt Independent

40 minutes ago

• Egypt Independent

So, has anything actually gotten more expensive because of Trump's tariffs?

CNN — Predictions from mainstream economists were dire after President Donald Trump launched his tariff campaign just a couple weeks after he began his second term in office: Prices would rise — sharply — they said, reigniting an inflation crisis that tens of millions of Americans had elected him to solve. But that massive, tariff-induced inflation spike hasn't materialized. Not even close. Not yet, anyway. Consumer prices rose just 2.4 percent, annually, last month, according to the Bureau of Labor Statistics. That was less than economists had expected, and only slightly higher than the 2.3 percent rate in April, which was the US economy's lowest inflation since February 2021. According to the Personal Consumption Expenditures price index most closely followed by the Federal Reserve, core inflation — which strips out volatile items like food and gas prices — fell to 2.5 percent in April. That was the lowest reading since March 2021. That's a far cry from what economists and consumers have predicted. Month after month, inflation has fallen short of Wall Street's expectations, as American businesses said they would be forced to hike prices as a result of historically high tariffs. America's effective tariff rate is now 14.1 percent, according to Fitch Ratings, up from 2.3 percent last year. That means Trump raised taxes on imported goods by nearly 12 percentage points in 2025. Economists expected substantial inflation increases as a result. Goldman Sachs analysts last month said core goods inflation could hit 6.3 percent this year and consumer prices would surge 3.7 percent by early 2026. JPMorgan economists said core inflation would nearly double by the end of this year. And American consumers in May expected prices to rise an alarming 6.6 percent this year, according to sentiment surveys from the University of Michigan. That prediction fell in June, but consumers still expect inflation to hit 5.1 percent in 2025. So what happened? Are economists just really bad at their jobs? Not quite. Their predictions may yet come true — and economists are largely cleaving to their bets. America's economy is enormous and complex, and predicting when prices will rise and fall can be an extremely tricky business — particularly when factoring in the on-again, off-again nature of Trump's tariff regime. Still, tariffs through mid-June haven't caused inflation to spike. Love tariffs or hate them, there's no denying inflation is lower now than when Trump took office. Very little has gotten more expensive Fed Chair Jerome Powell on Wednesday said just a few items are growing in price as a result of tariffs, including electronics that come from China. He said PCs and A/V equipment have become more expensive because of Trump's trade war. But the price increases aren't widespread yet, Powell noted, because stores are still working through the inventory that came in to their warehouses before Trump put tariffs in place. 'Goods being sold at retailers today may have been imported several months ago, before tariffs were imposed,' Powell said. Gantry cranes stand near shipping containers at Yangshan Port outside of Shanghai, China, on June 17. Go Nakamura/Reuters Research firm Telsey Advisory Group, which has been tracking the prices of 80 select consumer items across a wide variety of retail categories, reported this week that just 19 products it has tracked have gained in price since mid-April — and 16 items' prices fell. Similarly, the New York Times' Wirecutter, which recommends consumer products, tracked the prices for 40 of its top picks over the course of two months and found this week that the vast majority didn't change price at all: 10 gained in price and only half of those gained more than 7 percent. 'There haven't been many significant upticks in prices as of yet given that many retailers are still selling through their lower-cost inventory,' Dana Telsey, CEO and chief research officer of Telsey Advisory Group told CNN. Even autos, many of which are subject to a 25 percent tariff, plus a tariff of up to 25 percent on some imported auto parts, haven't gained in price — they've fallen. New car prices fell 0.2 percent in May, according to car-buying research site Edmunds, and they rose only 2.5 percent compared to the pre-tariff period in March. Both new and used car prices fell in May, according to the BLS' Consumer Price Index. That's because dealers are still working through their supply of pre-tariff cars, according to Ivan Drury, director of insights at Edmunds. Trump team takes a victory lap With prices remaining in check so far, the Trump administration has declared victory. 'They've all been discredited,' said the White House's top trade adviser, Peter Navarro, in an interview last month with CNN, referring to tariffs' detractors. 'What we got in the first term [of Trump's presidency] was not recession or inflation, we got price stability, robust economic growth and rising wages, just as we thought we would.' Navarro has frequently pointed to the low overall inflation during Trump's first term, despite his tariffs. And he's right: CPI peaked at 2.9 percent in mid-2018 before falling below 2 percent throughout most of 2019. But Navarro's assertion about the impact of tariffs on the US economy comes with a couple of significant caveats: First, Trump during his current term has already placed tariffs of at least 10 percent on $2.3 trillion of imported goods, comprising 71 percent of all US goods imports, according to the nonpartisan Tax Foundation. In his first term, Trump placed tariffs on just $380 billion worth of foreign goods. And second, the pandemic severely disrupted the global economy soon after Trump's tariffs took effect, preventing economists from getting a decent picture of how significantly prices rose. But some data shows prices gained in the specific sectors Trump targeted with his first-term tariffs. For example, after imposing some steel tariffs in 2018, US production expanded modestly, but it sent costs rising for cars, tools and machines; and shrank those industries' output by more than $3 billion in 2021, the International Trade Commission found in a 2023 analysis. Nevertheless, Joseph Lavorgna, a former Wall Street economist turned Treasury Department official, took a victory lap because inflation hasn't risen since Trump imposed tariffs during his second term. 'Tariffs have just not shown up at all in any of the data,' Lavorgna, counselor to the Treasury secretary, told CNN this week. 'The forecasting community has been completely wrong.' Lavorgna, a former SMBC Nikko Securities chief economist who also served in the White House during Trump's first term, said a broad range of inflation metrics suggests foreign producers are absorbing tariffs and that the trade war won't be inflationary. White House press secretary Karoline Leavitt echoed that message Thursday during a briefing, saying: 'America is quickly returning to the successful formula of the first Trump administration: low inflation and rising wages.' Economists say: Just wait Many mainstream economists argue that the low inflation of the spring represents a calm before the summer storm, when they expect prices to rise. 'It's a question of when, not if,' Stephanie Roth, chief economist at Wolfe Research, told CNN. Walmart, Target, Lululemon, Home Depot and Costco among others have said in recent weeks that they will raise some prices because of tariff pressures. Although some of the big box retailers said they would work to keep most prices low, they acknowledged that they operate low-margin businesses, and in the cases when American-made alternatives are unavailable or more expensive, they expect that they'll have to pass some of that additional cost to their customers. An employee counts inventory in a Walmart Supercenter on May 15 in Austin, won't be alone in their struggles with tariffs in the coming months, said said Sid Malladi, CEO of Nuvo, a company that manages businesses' trade partnerships. Price hikes will weigh on businesses, too, many of whom will take on some of the hit to keep prices as low as possible for as long as possible. But that could mean difficult conversations in the boardroom later this year about potential layoffs and other cost cutting. 'This is early innings. No one wants to be first out of the gate,' said Malladi. 'You don't want to risk reputational damage to your brand, because raising prices in this environment might cause customers to turn away from you. Many may eat their margin for a few months.' 'It's hard to overstate the level of anxiety businesses have,' Malladi added. Small businesses, without the supply chain mastery of larger companies, have struggled in particular to afford higher tariff costs and have said they are reducing supply or raising prices. Many have complained that American alternatives for some foreign imports may be unavailable or are too expensive. 'While larger retailers may have the scale, capital and pricing power to absorb or strategically offset these pressures, small and mid-sized players remain significantly more vulnerable, with limited flexibility to manage rising input costs or supply disruptions,' Telsey said in TAG's latest Product Pricing Analysis report. Telsey noted that prices, when they eventually start to rise, won't all gain equally or across the board. Only select goods will start to gain in price to start, likely beginning in late August or September. 'Inventory is ordered typically anywhere from six months to one year in advance, and it is expected that the select pricing pieces will begin to show up in late summer,' she said. Fed Chair Powell on Wednesday agreed that the tipping point for broad consumer price increases could come this summer as inventories of pre-tariff warehoused goods dry up. 'We do expect to see more of that over the course of the summer,' Powell said. 'It takes some time for tariffs to work their way through the chain of distribution to the end consumer.' Normally, retailers hold about 1 to 2 months' worth of inventory on items, noted Kristy Akullian, head of iShares Investment Strategy, Americas, so prices could begin to rise in the coming weeks. Another indication that prices could start to spike: In April's Institute for Supply Management services report, prices paid by businesses increased the most since November 2022, and business inventories contracted. 'Low inventories make it harder for companies to keep prices steady, so going forward, we expect the inflation impacts from tariffs to become more apparent,' Akullian said. Powell agreed with that timeline, noting companies that report on their business sentiment to the Fed have said they expect to pass those tariff costs on down the supply chain. 'Many, many companies do expect to put all or — some of the effect of tariffs through to the next person in the chain, and ultimately, to the consumer,' Powell said. 'So we're beginning to see some effects. We expect to see more.' Despite initial success at maintaining low prices, Treasury's Lavorgna conceded inflation could begin to rise down the road because of tariffs. 'I'm not saying there can't be a tariff effect on the numbers at some point,' he said.

See - Sada Elbalad

12 hours ago

• See - Sada Elbalad

FedEx Suspends Shipments to Israel amid Rising Regional Tensions

Taarek Refaat FedEx, the global logistics giant, has temporarily suspended shipments to Israel and Iraq due to escalating tensions in the Middle East. The company announced the decision on its official website on Friday, citing security concerns as the region grapples with growing instability between Israel and Iran. FedEx, listed on the New York Stock Exchange under the symbol "FDX.N," confirmed that it has also halted some of its flights to destinations in the region. The company emphasized that the safety of its employees, customers, and the communities it serves remains its top priority. "As we closely monitor developments in the region, we are adjusting our operations based on safety requirements and the evolving situation on the ground," a FedEx spokesperson stated. This decision by FedEx follows a similar move by Danish shipping giant Maersk, which announced the temporary suspension of its maritime services to the Israeli port of Haifa due to security concerns related to the ongoing conflict between Israel and Iran. The ripple effects of these moves are expected to impact global supply chains, with disruptions to shipments and trade flows. The Middle East, a crucial hub for trade and logistics, has already seen a slowdown in economic activity due to the political instability, and further suspensions could exacerbate the situation. As tensions continue to rise, companies in the logistics and shipping sectors are likely to remain cautious in their operations. The ongoing situation highlights how geopolitical conflicts can quickly extend beyond national borders, influencing international commerce and the movement of goods. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand

See - Sada Elbalad

15 hours ago

• See - Sada Elbalad

PM Shehbaz Speaks with the US Secretary of State Marco Rubio

Taarek Refaat Prime Minister's Office Press wing Islamabad: 20 June, 2025 Press Release: Prime Minister speaks with the U.S. Secretary of State Prime Minister Muhammad Shehbaz Sharif received a telephone call from U.S. Secretary of State Marco Rubio, this evening. During their warm and cordial conversation, the Prime Minister conveyed his best wishes for President Donald Trump. He praised the President for his bold leadership and appreciated Secretary Rubio's proactive diplomacy that played a pivotal role in helping Pakistan and India to arrive at a ceasefire understanding and averting a major catastrophe between the two nuclear armed states. The Prime Minister added that President Trump's positive statements about Pakistan were most encouraging for a durable peace in South Asia, which could only be made possible by initiating meaningful dialogue between Pakistan and India. In this context, he reaffirmed Pakistan's willingness for talks with India on all outstanding issues, including Jammu & Kashmir, the Indus Water Treaty, trade and counter-terrorism. The situation in the Middle East, particularly the Iran-Israel crisis, was also discussed, where the Prime Minister emphasized on the need to find a peaceful resolution to this grave crisis, through dialogue and diplomacy. He stated that Pakistan was ready to play a constructive role in any effort for peace in the current situation, which was deeply worrying, not only for the region, but for the entire world. While recalling President Trump's focus on trade, the Prime Minister stated that Pakistan and the U.S. needed to work together to advance mutually beneficial cooperation across a wide range of areas, including trade, investment, energy, mining, rare earth metals, and IT. On security and counter-terrorism, the Prime Minister reaffirmed Pakistan's resolve to deal with the menace of terrorism from the entire country, particularly the threat from BLA, TTP and other militant groups. In this regard, Secretary Rubio appreciated Pakistan's counter-terrorism efforts and assured Pakistan of full cooperation by the U.S. in countering all such threats. The Prime Minister noted, with great satisfaction, the most cordial and productive discussion between President Trump and Chief of the Army Staff, Field Marshal Syed Asim Munir, in Washington, earlier this week. Both the Prime Minister and Secretary Rubio agreed that talks between their two countries must now be translated into tangible actions, across all areas. The Prime Minister also stressed upon the need for frequent high-level engagements to build upon this positive momentum in Pakistan-U.S. bilateral relations. In this regard, he reiterated his invitation to President Trump to undertake an official visit to Pakistan and said that he too, was looking forward to meeting President Trump at his earliest convenience. The Prime Minister also reiterated his invitation to Secretary Rubio to visit Pakistan, at an early date. Thanking the Prime Minister for receiving his telephone call, Secretary Rubio shared his desire to enhance bilateral cooperation between Pakistan and the U.S., across all areas of shared interest. He also appreciated Pakistan's resolve to uphold the ceasefire understanding with India, as well as its sustained efforts for peace in the region. In this context, he encouraged Pakistan, which enjoys excellent ties with Iran, to continue playing its role in the ongoing peace efforts with Iran. He further noted that the U.S. was committed to working closely with Pakistan to promote regional as well as global peace and stability. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream News Shell Unveils Cost-Cutting, LNG Growth Plan Technology 50-Year Soviet Spacecraft 'Kosmos 482' Crashes into Indian Ocean News 3 Killed in Shooting Attack in Thailand