Stocks dip, oil rallies as Mideast tensions rise

Stocks fell, while oil and gold have risen, as fighting between Israel and Iran entered a fifth day, raising investor concerns over the risk of a broader regional conflict in a week packed with key central bank decisions.
US President Donald Trump urged everyone to evacuate Tehran and cut short his visit to the Group of Seven summit in Canada, while a separate report said he had asked for the National Security Council to be prepared in the situation room.
S&P 500 futures initially dropped 0.7 per cent before paring some of those losses, while crude prices rose as much as 2.2 per cent to a high of $US74.85 ($A114.45) a barrel, bringing gains in the last week to around 11 per cent.
Adding another layer of complexity for investors this week is a raft of central bank meetings, starting with the BOJ and including the Federal Reserve, Bank of England and Swiss National Bank.
"Investors are trying to take all this on board. It is very difficult at the moment, I think. And there's an understandable degree of nervousness. Should I really be holding on to these stocks now at these levels?" Chris Beauchamp, chief market analyst at IG, said.
"Once the central bank parade is out of the way, then we might get a better sense of where they view things."
The heightened uncertainty kept investors flocking to traditional safe-haven assets, as a rise in US Treasuries pushed yields lower across the curve, while gold prices edged up 0.3 per cent.
Stocks in Europe sagged, leaving the STOXX 600 down 0.7 per cent on the day and around its lowest in three weeks, while euro zone government bond yields held steady.
The major concern for investors with the conflict between Israel and Iran is the potential for it spill over into the broader Middle East, home to a large portion of the world's oil supply.
No disruptions to crude supply have been reported yet, although news of a collision between two ships in the Gulf of Oman sent another brief jolt through the oil market overnight.
The Bank of Japan, the first major central bank to decide on monetary policy this week, left short-term interest rates unchanged at 0.5 per cent as expected. The central bank said it would slow the pace at which it is unwinding its massive holdings of government bonds to avoid disrupting the market.
Weak demand for Japanese government bonds (JGBs) at recent auctions, along with concern about the country's finances, sent longer-dated borrowing costs spiralling to record highs last month.
The yen strengthened modestly, leaving the dollar down 0.1 per cent at 144.725, while yields on 10-year bonds rose 2.5 bps to 1.475 per cent, as the BOJ's outlook suggested there would be less support for shorter-dated paper.
"The slower pace of bond tapering was what the market had hoped for and it help prevent long-term interest rates from shooting up," Saisuke Sakai, a senior economist at Mizuho Research and Technologies said.
Meanwhile, the Federal Reserve is expected to hold rates steady on Wednesday but the focus yet again will be on the path Fed Chair Jerome Powell charts for future rate cuts as policymakers try to navigate Trump's tariff policies and their global impact.
Traders are pricing in two cuts by the end of the year.
Investors also monitored developments on trade deals with Trump's early July deadline on tariffs fast approaching.
Tariff talks between Japan and the United States on the sidelines of the G7 summit fell short of a breakthrough, while a deal with Britain left unresolved the issue of steel and aluminium duties.
Gold, which has gained 30 per cent so far this year, was up another 0.1 per cent at $US3,385 ($A5,176) an ounce.
Stocks fell, while oil and gold have risen, as fighting between Israel and Iran entered a fifth day, raising investor concerns over the risk of a broader regional conflict in a week packed with key central bank decisions.
US President Donald Trump urged everyone to evacuate Tehran and cut short his visit to the Group of Seven summit in Canada, while a separate report said he had asked for the National Security Council to be prepared in the situation room.
S&P 500 futures initially dropped 0.7 per cent before paring some of those losses, while crude prices rose as much as 2.2 per cent to a high of $US74.85 ($A114.45) a barrel, bringing gains in the last week to around 11 per cent.
Adding another layer of complexity for investors this week is a raft of central bank meetings, starting with the BOJ and including the Federal Reserve, Bank of England and Swiss National Bank.
"Investors are trying to take all this on board. It is very difficult at the moment, I think. And there's an understandable degree of nervousness. Should I really be holding on to these stocks now at these levels?" Chris Beauchamp, chief market analyst at IG, said.
"Once the central bank parade is out of the way, then we might get a better sense of where they view things."
The heightened uncertainty kept investors flocking to traditional safe-haven assets, as a rise in US Treasuries pushed yields lower across the curve, while gold prices edged up 0.3 per cent.
Stocks in Europe sagged, leaving the STOXX 600 down 0.7 per cent on the day and around its lowest in three weeks, while euro zone government bond yields held steady.
The major concern for investors with the conflict between Israel and Iran is the potential for it spill over into the broader Middle East, home to a large portion of the world's oil supply.
No disruptions to crude supply have been reported yet, although news of a collision between two ships in the Gulf of Oman sent another brief jolt through the oil market overnight.
The Bank of Japan, the first major central bank to decide on monetary policy this week, left short-term interest rates unchanged at 0.5 per cent as expected. The central bank said it would slow the pace at which it is unwinding its massive holdings of government bonds to avoid disrupting the market.
Weak demand for Japanese government bonds (JGBs) at recent auctions, along with concern about the country's finances, sent longer-dated borrowing costs spiralling to record highs last month.
The yen strengthened modestly, leaving the dollar down 0.1 per cent at 144.725, while yields on 10-year bonds rose 2.5 bps to 1.475 per cent, as the BOJ's outlook suggested there would be less support for shorter-dated paper.
"The slower pace of bond tapering was what the market had hoped for and it help prevent long-term interest rates from shooting up," Saisuke Sakai, a senior economist at Mizuho Research and Technologies said.
Meanwhile, the Federal Reserve is expected to hold rates steady on Wednesday but the focus yet again will be on the path Fed Chair Jerome Powell charts for future rate cuts as policymakers try to navigate Trump's tariff policies and their global impact.
Traders are pricing in two cuts by the end of the year.
Investors also monitored developments on trade deals with Trump's early July deadline on tariffs fast approaching.
Tariff talks between Japan and the United States on the sidelines of the G7 summit fell short of a breakthrough, while a deal with Britain left unresolved the issue of steel and aluminium duties.
Gold, which has gained 30 per cent so far this year, was up another 0.1 per cent at $US3,385 ($A5,176) an ounce.
Stocks fell, while oil and gold have risen, as fighting between Israel and Iran entered a fifth day, raising investor concerns over the risk of a broader regional conflict in a week packed with key central bank decisions.
US President Donald Trump urged everyone to evacuate Tehran and cut short his visit to the Group of Seven summit in Canada, while a separate report said he had asked for the National Security Council to be prepared in the situation room.
S&P 500 futures initially dropped 0.7 per cent before paring some of those losses, while crude prices rose as much as 2.2 per cent to a high of $US74.85 ($A114.45) a barrel, bringing gains in the last week to around 11 per cent.
Adding another layer of complexity for investors this week is a raft of central bank meetings, starting with the BOJ and including the Federal Reserve, Bank of England and Swiss National Bank.
"Investors are trying to take all this on board. It is very difficult at the moment, I think. And there's an understandable degree of nervousness. Should I really be holding on to these stocks now at these levels?" Chris Beauchamp, chief market analyst at IG, said.
"Once the central bank parade is out of the way, then we might get a better sense of where they view things."
The heightened uncertainty kept investors flocking to traditional safe-haven assets, as a rise in US Treasuries pushed yields lower across the curve, while gold prices edged up 0.3 per cent.
Stocks in Europe sagged, leaving the STOXX 600 down 0.7 per cent on the day and around its lowest in three weeks, while euro zone government bond yields held steady.
The major concern for investors with the conflict between Israel and Iran is the potential for it spill over into the broader Middle East, home to a large portion of the world's oil supply.
No disruptions to crude supply have been reported yet, although news of a collision between two ships in the Gulf of Oman sent another brief jolt through the oil market overnight.
The Bank of Japan, the first major central bank to decide on monetary policy this week, left short-term interest rates unchanged at 0.5 per cent as expected. The central bank said it would slow the pace at which it is unwinding its massive holdings of government bonds to avoid disrupting the market.
Weak demand for Japanese government bonds (JGBs) at recent auctions, along with concern about the country's finances, sent longer-dated borrowing costs spiralling to record highs last month.
The yen strengthened modestly, leaving the dollar down 0.1 per cent at 144.725, while yields on 10-year bonds rose 2.5 bps to 1.475 per cent, as the BOJ's outlook suggested there would be less support for shorter-dated paper.
"The slower pace of bond tapering was what the market had hoped for and it help prevent long-term interest rates from shooting up," Saisuke Sakai, a senior economist at Mizuho Research and Technologies said.
Meanwhile, the Federal Reserve is expected to hold rates steady on Wednesday but the focus yet again will be on the path Fed Chair Jerome Powell charts for future rate cuts as policymakers try to navigate Trump's tariff policies and their global impact.
Traders are pricing in two cuts by the end of the year.
Investors also monitored developments on trade deals with Trump's early July deadline on tariffs fast approaching.
Tariff talks between Japan and the United States on the sidelines of the G7 summit fell short of a breakthrough, while a deal with Britain left unresolved the issue of steel and aluminium duties.
Gold, which has gained 30 per cent so far this year, was up another 0.1 per cent at $US3,385 ($A5,176) an ounce.
Stocks fell, while oil and gold have risen, as fighting between Israel and Iran entered a fifth day, raising investor concerns over the risk of a broader regional conflict in a week packed with key central bank decisions.
US President Donald Trump urged everyone to evacuate Tehran and cut short his visit to the Group of Seven summit in Canada, while a separate report said he had asked for the National Security Council to be prepared in the situation room.
S&P 500 futures initially dropped 0.7 per cent before paring some of those losses, while crude prices rose as much as 2.2 per cent to a high of $US74.85 ($A114.45) a barrel, bringing gains in the last week to around 11 per cent.
Adding another layer of complexity for investors this week is a raft of central bank meetings, starting with the BOJ and including the Federal Reserve, Bank of England and Swiss National Bank.
"Investors are trying to take all this on board. It is very difficult at the moment, I think. And there's an understandable degree of nervousness. Should I really be holding on to these stocks now at these levels?" Chris Beauchamp, chief market analyst at IG, said.
"Once the central bank parade is out of the way, then we might get a better sense of where they view things."
The heightened uncertainty kept investors flocking to traditional safe-haven assets, as a rise in US Treasuries pushed yields lower across the curve, while gold prices edged up 0.3 per cent.
Stocks in Europe sagged, leaving the STOXX 600 down 0.7 per cent on the day and around its lowest in three weeks, while euro zone government bond yields held steady.
The major concern for investors with the conflict between Israel and Iran is the potential for it spill over into the broader Middle East, home to a large portion of the world's oil supply.
No disruptions to crude supply have been reported yet, although news of a collision between two ships in the Gulf of Oman sent another brief jolt through the oil market overnight.
The Bank of Japan, the first major central bank to decide on monetary policy this week, left short-term interest rates unchanged at 0.5 per cent as expected. The central bank said it would slow the pace at which it is unwinding its massive holdings of government bonds to avoid disrupting the market.
Weak demand for Japanese government bonds (JGBs) at recent auctions, along with concern about the country's finances, sent longer-dated borrowing costs spiralling to record highs last month.
The yen strengthened modestly, leaving the dollar down 0.1 per cent at 144.725, while yields on 10-year bonds rose 2.5 bps to 1.475 per cent, as the BOJ's outlook suggested there would be less support for shorter-dated paper.
"The slower pace of bond tapering was what the market had hoped for and it help prevent long-term interest rates from shooting up," Saisuke Sakai, a senior economist at Mizuho Research and Technologies said.
Meanwhile, the Federal Reserve is expected to hold rates steady on Wednesday but the focus yet again will be on the path Fed Chair Jerome Powell charts for future rate cuts as policymakers try to navigate Trump's tariff policies and their global impact.
Traders are pricing in two cuts by the end of the year.
Investors also monitored developments on trade deals with Trump's early July deadline on tariffs fast approaching.
Tariff talks between Japan and the United States on the sidelines of the G7 summit fell short of a breakthrough, while a deal with Britain left unresolved the issue of steel and aluminium duties.
Gold, which has gained 30 per cent so far this year, was up another 0.1 per cent at $US3,385 ($A5,176) an ounce.

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"We should call it Australian parmesan and Australian feta because Australian milk is the best in the world," he said. Canberra and Brussels announced on Wednesday separate negotiations on a defence pact to boost defence industry, cyber-security and counter-terrorism co-operation. But it would not have military deployment obligations. There is appetite for the European Union and Australia to signal a "middle finger to Trump" by uniting on a long-awaited free trade deal but some in Brussels are tempering expectations of a quick turnaround. Trade talks kicked off in 2018 but Canberra walked away about 18 months ago over unsatisfactory market access for beef and lamb producers, and a reluctance to give up naming rights on products for geographical origin reasons, including feta, parmesan and prosecco. Fast forward to 2025 and US President Donald Trump's tariff antics have brought both parties back to the negotiating table. There was speculation of a quick conclusion with the Australian Financial Review reporting European Commission President Ursula von der Leyen had flagged a trip to Australia for late July or early August in anticipation of signing a deal. This echoed the fact she had also been quick to flag an agreement while offering Anthony Albanese her congratulations on becoming prime minister via Twitter in 2022. But multiple EU spokespeople have declined to confirm the travel, telling AAP a Down Under trip is "not on the radar". Despite acknowledging renewed political will, various sources in Brussels are cautioning patience. "There is no rush," according to one inside the EU Commission. "I wouldn't even say the end of the year, I would say more next year." Jacob Funk Kirkegaard, a senior fellow with Brussels think-tank Bruegel, estimates it could take at least another six months to resolve outstanding issues on agricultural tariffs and quotas. "The broad contour of the deal is already negotiated," he told AAP. "They know where the skeletons are buried. It takes a political grand bargain to do it." He noted that if the EU makes concessions, it would likely encounter an angry backlash from French and Polish farmers, who also opposed the EU's deal last year with Argentina, Brazil, Paraguay and Uruguay. However tractor and manure street protests wouldn't be enough to block a deal with Canberra, he said. Amid Washington's shift to extreme trade protectionism, an EU-Australian free trade deal would send a strong message to the Trump administration, Kirkegaard said. "As two of America's traditional allies, if both the EU and Australia find themselves subject to US tariffs, what better way than to do a deal with each other," he said. "So perhaps both countries feel this political signal is kind of a middle finger to Trump as well." Back in Melbourne, Sicilian-born cheesemaker Giorgio Linguanti from That's Amore Cheese faces an anxious wait to find out whether he can continue to market his wares using generic terms like parmesan or mozzarella. Yet he is open to compromise. "We should call it Australian parmesan and Australian feta because Australian milk is the best in the world," he said. Canberra and Brussels announced on Wednesday separate negotiations on a defence pact to boost defence industry, cyber-security and counter-terrorism co-operation. But it would not have military deployment obligations. There is appetite for the European Union and Australia to signal a "middle finger to Trump" by uniting on a long-awaited free trade deal but some in Brussels are tempering expectations of a quick turnaround. Trade talks kicked off in 2018 but Canberra walked away about 18 months ago over unsatisfactory market access for beef and lamb producers, and a reluctance to give up naming rights on products for geographical origin reasons, including feta, parmesan and prosecco. Fast forward to 2025 and US President Donald Trump's tariff antics have brought both parties back to the negotiating table. There was speculation of a quick conclusion with the Australian Financial Review reporting European Commission President Ursula von der Leyen had flagged a trip to Australia for late July or early August in anticipation of signing a deal. This echoed the fact she had also been quick to flag an agreement while offering Anthony Albanese her congratulations on becoming prime minister via Twitter in 2022. But multiple EU spokespeople have declined to confirm the travel, telling AAP a Down Under trip is "not on the radar". Despite acknowledging renewed political will, various sources in Brussels are cautioning patience. "There is no rush," according to one inside the EU Commission. "I wouldn't even say the end of the year, I would say more next year." Jacob Funk Kirkegaard, a senior fellow with Brussels think-tank Bruegel, estimates it could take at least another six months to resolve outstanding issues on agricultural tariffs and quotas. "The broad contour of the deal is already negotiated," he told AAP. "They know where the skeletons are buried. It takes a political grand bargain to do it." He noted that if the EU makes concessions, it would likely encounter an angry backlash from French and Polish farmers, who also opposed the EU's deal last year with Argentina, Brazil, Paraguay and Uruguay. However tractor and manure street protests wouldn't be enough to block a deal with Canberra, he said. 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But it would not have military deployment obligations. There is appetite for the European Union and Australia to signal a "middle finger to Trump" by uniting on a long-awaited free trade deal but some in Brussels are tempering expectations of a quick turnaround. Trade talks kicked off in 2018 but Canberra walked away about 18 months ago over unsatisfactory market access for beef and lamb producers, and a reluctance to give up naming rights on products for geographical origin reasons, including feta, parmesan and prosecco. Fast forward to 2025 and US President Donald Trump's tariff antics have brought both parties back to the negotiating table. There was speculation of a quick conclusion with the Australian Financial Review reporting European Commission President Ursula von der Leyen had flagged a trip to Australia for late July or early August in anticipation of signing a deal. This echoed the fact she had also been quick to flag an agreement while offering Anthony Albanese her congratulations on becoming prime minister via Twitter in 2022. But multiple EU spokespeople have declined to confirm the travel, telling AAP a Down Under trip is "not on the radar". Despite acknowledging renewed political will, various sources in Brussels are cautioning patience. "There is no rush," according to one inside the EU Commission. "I wouldn't even say the end of the year, I would say more next year." Jacob Funk Kirkegaard, a senior fellow with Brussels think-tank Bruegel, estimates it could take at least another six months to resolve outstanding issues on agricultural tariffs and quotas. "The broad contour of the deal is already negotiated," he told AAP. "They know where the skeletons are buried. It takes a political grand bargain to do it." He noted that if the EU makes concessions, it would likely encounter an angry backlash from French and Polish farmers, who also opposed the EU's deal last year with Argentina, Brazil, Paraguay and Uruguay. However tractor and manure street protests wouldn't be enough to block a deal with Canberra, he said. Amid Washington's shift to extreme trade protectionism, an EU-Australian free trade deal would send a strong message to the Trump administration, Kirkegaard said. "As two of America's traditional allies, if both the EU and Australia find themselves subject to US tariffs, what better way than to do a deal with each other," he said. "So perhaps both countries feel this political signal is kind of a middle finger to Trump as well." Back in Melbourne, Sicilian-born cheesemaker Giorgio Linguanti from That's Amore Cheese faces an anxious wait to find out whether he can continue to market his wares using generic terms like parmesan or mozzarella. Yet he is open to compromise. 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A Supreme Court ruling in May eased concerns that Trump could fire Powell as the justices called the Fed "a uniquely structured, quasi-private entity." US President Donald Trump has again floated the idea of firing Jerome Powell, the Federal Reserve chair he has long attacked over interest rates he wants lowered. "I don't know why the Board doesn't override (Powell)," Trump wrote in a lengthy post on Truth Social criticising Fed policy. "Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his Term ends shortly." Trump added: "I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I've tried it all different ways." Fed policymakers have long been seen as insulated from presidential dismissal for reasons other than malfeasance or misconduct, but Trump has threatened to test that legal premise with long-running threats to fire Powell. Just last week, though, Trump set aside the idea. "I'm not going to fire him," he said at the White House on June 12. The Fed held rates steady on Wednesday in the 4.25 per cent-4.50 per cent range and forecast slower growth as well as higher unemployment and inflation by year's end. Fed Governor Chris Waller, who has been floated as a possible Trump pick to be Powell's successor, said on Friday that with inflation coming down and the labour market showing signs of weakening, rate cuts should be considered as soon as July. But even Waller joined the unanimous Fed decision to leave rates on hold, signalling no inclination by any of Powell's six fellow Board members, or of the five voting regional Fed bank presidents, to "override" him. Elected partly on voters' belief that he could contain high inflation, the Republican US president has imposed tariff hikes in office. Powell, echoing an academic consensus, has said some of those tariff hikes will be paid for in higher consumer prices. Powell's term ends in May 2026, and Trump is expected to nominate a successor in the coming months. A Supreme Court ruling in May eased concerns that Trump could fire Powell as the justices called the Fed "a uniquely structured, quasi-private entity." US President Donald Trump has again floated the idea of firing Jerome Powell, the Federal Reserve chair he has long attacked over interest rates he wants lowered. "I don't know why the Board doesn't override (Powell)," Trump wrote in a lengthy post on Truth Social criticising Fed policy. "Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his Term ends shortly." Trump added: "I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I've tried it all different ways." Fed policymakers have long been seen as insulated from presidential dismissal for reasons other than malfeasance or misconduct, but Trump has threatened to test that legal premise with long-running threats to fire Powell. Just last week, though, Trump set aside the idea. "I'm not going to fire him," he said at the White House on June 12. The Fed held rates steady on Wednesday in the 4.25 per cent-4.50 per cent range and forecast slower growth as well as higher unemployment and inflation by year's end. Fed Governor Chris Waller, who has been floated as a possible Trump pick to be Powell's successor, said on Friday that with inflation coming down and the labour market showing signs of weakening, rate cuts should be considered as soon as July. But even Waller joined the unanimous Fed decision to leave rates on hold, signalling no inclination by any of Powell's six fellow Board members, or of the five voting regional Fed bank presidents, to "override" him. Elected partly on voters' belief that he could contain high inflation, the Republican US president has imposed tariff hikes in office. Powell, echoing an academic consensus, has said some of those tariff hikes will be paid for in higher consumer prices. Powell's term ends in May 2026, and Trump is expected to nominate a successor in the coming months. A Supreme Court ruling in May eased concerns that Trump could fire Powell as the justices called the Fed "a uniquely structured, quasi-private entity." US President Donald Trump has again floated the idea of firing Jerome Powell, the Federal Reserve chair he has long attacked over interest rates he wants lowered. "I don't know why the Board doesn't override (Powell)," Trump wrote in a lengthy post on Truth Social criticising Fed policy. "Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his Term ends shortly." Trump added: "I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I've tried it all different ways." Fed policymakers have long been seen as insulated from presidential dismissal for reasons other than malfeasance or misconduct, but Trump has threatened to test that legal premise with long-running threats to fire Powell. Just last week, though, Trump set aside the idea. "I'm not going to fire him," he said at the White House on June 12. The Fed held rates steady on Wednesday in the 4.25 per cent-4.50 per cent range and forecast slower growth as well as higher unemployment and inflation by year's end. Fed Governor Chris Waller, who has been floated as a possible Trump pick to be Powell's successor, said on Friday that with inflation coming down and the labour market showing signs of weakening, rate cuts should be considered as soon as July. But even Waller joined the unanimous Fed decision to leave rates on hold, signalling no inclination by any of Powell's six fellow Board members, or of the five voting regional Fed bank presidents, to "override" him. Elected partly on voters' belief that he could contain high inflation, the Republican US president has imposed tariff hikes in office. Powell, echoing an academic consensus, has said some of those tariff hikes will be paid for in higher consumer prices. Powell's term ends in May 2026, and Trump is expected to nominate a successor in the coming months. A Supreme Court ruling in May eased concerns that Trump could fire Powell as the justices called the Fed "a uniquely structured, quasi-private entity."

West Australian

6 hours ago

• West Australian

Trump 'may change mind' about firing Fed Chair

US President Donald Trump has again floated the idea of firing Jerome Powell, the Federal Reserve chair he has long attacked over interest rates he wants lowered. "I don't know why the Board doesn't override (Powell)," Trump wrote in a lengthy post on Truth Social criticising Fed policy. "Maybe, just maybe, I'll have to change my mind about firing him? But regardless, his Term ends shortly." Trump added: "I fully understand that my strong criticism of him makes it more difficult for him to do what he should be doing, lowering Rates, but I've tried it all different ways." Fed policymakers have long been seen as insulated from presidential dismissal for reasons other than malfeasance or misconduct, but Trump has threatened to test that legal premise with long-running threats to fire Powell. Just last week, though, Trump set aside the idea. "I'm not going to fire him," he said at the White House on June 12. The Fed held rates steady on Wednesday in the 4.25 per cent-4.50 per cent range and forecast slower growth as well as higher unemployment and inflation by year's end. Fed Governor Chris Waller, who has been floated as a possible Trump pick to be Powell's successor, said on Friday that with inflation coming down and the labour market showing signs of weakening, rate cuts should be considered as soon as July. But even Waller joined the unanimous Fed decision to leave rates on hold, signalling no inclination by any of Powell's six fellow Board members, or of the five voting regional Fed bank presidents, to "override" him. Elected partly on voters' belief that he could contain high inflation, the Republican US president has imposed tariff hikes in office. Powell, echoing an academic consensus, has said some of those tariff hikes will be paid for in higher consumer prices. Powell's term ends in May 2026, and Trump is expected to nominate a successor in the coming months. A Supreme Court ruling in May eased concerns that Trump could fire Powell as the justices called the Fed "a uniquely structured, quasi-private entity."