If Trump intervenes in Fed, upheaval could ensue

An independent central bank is considered by most (including this newsletter) as the foundation of a functional economy. The officials direct the economy by calibrating the reference rate of reference on which banking and mortgages are founded, among other debts.

Companies and consumers, in general, such as low interest rates, because the cost of the loan is cheaper. The first is encouraged to develop and invest, which, in turn, tends to increase income and expenses among the latter. But such behavior can overheat the economy, causing a price increase.

Repeated calls from US President Donald Trump for the president of the Federal Reserve Jerome Powell to reduce interest rates could make businesses and happy people – at the cost of letting inflation spread again. Factor in Trump’s prices, which are taxes on imports and therefore fundamentally prices increases, and inflation could get two shots in the arm.

This is why central bankers tend to operate independently of the government. An administration that aims to please the population could reduce rates despite high inflation, resulting in new economic difficulties.

These are rescue markets in the United States and Europe were on a break for the Good Friday holidays when Trump made his comments.

Trump calls Powell again to reduce rates
President Donald Trump said on Friday that “if we had a president of the Fed who understood what he was doing, Interest rates would dropAlso. “The White House said on Friday that officials assess if they can Remove the Fed chair. It is Not the first time Trump criticized Powell’s approach to American monetary policy.

Increasing disapproval of Trump’s economic manipulation
According to a CNBC survey of 1,000 Americans, 55% of respondents disapproved Trump management of the economy, the first time in a CNBC survey that has been clearly negative on the economy while the president. According to the survey results, more

China maintains stable interest rates
Asian-Pacific markets were mixed on Monday. Japanese Nikkei 225 lost about 1.3%. However, the CSI 300 in continental China added about 0.3% as a Populaire de China kept its unchanged loan administration rates. The 1 year LPR is currently 3.1% and the rate at 5 years is 3.6%. The economists interviewed by Reuters expected this result, which suggests that the PBOC favors the stability of the Yuan on the stimulation of the economy.

Beijing “reciprocal countermeasures” wishes
Chinese Ministry of Commerce warned Monday that Beijing firmly opposes any party reaching an agreement at the expense of the interests of China. If this happens, China will not accept it and resolutely take reciprocal countermeasures, “according to a CNBC translation. The Trump administration is would have planned to use pricing negotiations to put pressure on American partners in reducing their relationships with China.

American economic activity could “fall” in summer
The American economy could experience a High activity level now While buyers and businesses get their supplies on goods before the prices are triggered, President of Chicago, President Austan Goolsbee, said on Sunday. “The activity may seem artificially high in the initial, then by summer, could fall – because people have bought everything.” The most affected sectors include the automotive industry and electrical components, Goolsbee said.

State Department’s Revision Decree
Trump administration could soon deploy Balayage changes to the American State DepartmentAccording to a 16 -page decree project obtained by CNBC. If it is promulgated, the order would close the American embassies across southern Africa, would eliminate offices that work on issues such as democracy and human rights, as well as international organizations and the United Nations.

[PRO] Gains can move prices like focus
Market gyps due to Trump’s prices could be moderate – but not entirely slanderous – this week, according to strategists. Investors’ attention will turn to First quarter income reportswith Tesla And Alphabet announcing their performance respectively Tuesday and Thursday.

Trump’s prices push Asian trade partners to weigh in an enormous Alaska energy project

Alaska has long sought to build an 800 mile pipeline which would eventually cool the gas in a liquid for export to Asia. The project, which has an amazing price exceeding $ 40 billion, has been stuck on the drawing board for years.

Alaska LNG, As the project is known, shows new signs of life – Trump praising the project as a national priority. US Treasury Secretary Scott Bessent said this month earlier that the liquefied natural gas project could play an important role in trade negotiations with South Korea, Japan and Taiwan.

“We are thinking of a large LNG project in Alaska that South Korea, Japan [and] Taiwan is interested in the funding and taking a substantial part of the derogation, “said journalists on April 9, saying that such an agreement would help achieve Trump’s goal of reducing the American trade deficit.