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: 2025.06.06
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US Pres. Trump: Borrowing costs should be much lower
Breaking news
US Pres. Trump: Borrowing costs should be much lower
New
2025.06.06 23:17
2025.06.06 23:17
2025.06.06 23:17
United States (US) President Donald Trump took to social media to call upon Federal Reserve (Fed) Chairman Jerome Powell to lower interest rates on Friday.
"There is virtually no inflation (anymore), but if it should come back, raise "rate" to counter. Very simple!!! He is costing our country a fortune. Borrowing costs should be much lower," Trump said on Truth social.
Earlier in the day, the data published by the US Bureau of Labor Statistics (BLS) showed that Nonfarm Payrolls rose by 139,000 in April. On a concerning note, the BLS noted that total Nonfarm Payroll employment for March and April were revised down by 65,000 and 30,000, respectively.
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials - the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed's weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
Last updated
: 2025.06.06
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Canadian Dollar gives back gains despite upbeat jobs data
The Canadian Dollar (CAD) saw firm gains in employment figures on Friday, with an overall net increase in Canadian employment thumping median market forecasts for a contraction.
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The Mexican Peso (MXN) is experiencing its third consecutive day of gains against the US Dollar (USD) on Friday, pushing the USD/MXN exchange rate to its lowest level in eight months.
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2025.06.07 04:39USD/JPY Price Forecast: Soars to weekly high, near 145.00 on hot US jobs report
USD/JPY extended its uptrend for two consecutive days, with the major currency pair reaching a new weekly high of 145.09, driven by solid US economic data on Friday.
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2025.06.07 04:37EUR/USD declines on hot US NFP report, dents ECB-driven Euro rally
EUR/USD trip down extends its losses on Friday after hitting a six-week high near 1.1500 as Nonfarm Payroll figures in the United States (US) came in stronger than expected despite cooling off.
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2025.06.07 03:56Dow Jones Industrial Average tests fresh highs on NFP beat despite downside revisions
The Dow Jones Industrial Average (DJIA) briefly tested fresh 13-week peaks on Friday, with equities taking a step higher after Nonfarm Payrolls (NFP) jobs data came in stronger than expected.
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2025.06.07 03:03Silver Price Forecast: XAG/USD hits a 13-year high on increased demand for the industrial metal
Silver (XAG/USD) is experiencing another day of positive gains, which has pushed prices to $36.00, its highest level since February 2012, providing a firm barrier of resistance.
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2025.06.07 02:45Gold price falls on strong US Nonfarm Payrolls yet is poised for weekly advance
Gold price extended its losses for the second consecutive day on Friday but is poised to finish the week with gains of over 1.30% after the latest Nonfarm Payrolls report in the United States (US) was solid, pressuring traders to trim their bets that the Federal Reserve (Fed) will ease monetary poli
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2025.06.07 02:15Fed's Harker: Still possible the Fed can cut rates later this year
Federal Reserve (Fed) Bank of Philadelphia President Patrick Harker is embarking on a farewell tour.
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2025.06.07 01:57AUD/USD falls as US Dollar bulls return following NFP data
The Australian Dollar (AUD) is weakening against the US Dollar (USD) following Friday's Nonfarm Payrolls (NFP) pushed back expectations of a near-term interest rate cut from the Federal Reserve (Fed).
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2025.06.07 00:52GBP/USD slips as strong US jobs data cools Fed rate cut bets
GBP/USD tumbled during the North American session, down over 0.30% after the latest jobs report in the United States (US) maintained the status quo, with the economy remaining strong. The pair traded at 1.3526 after hitting a daily high of 1.3586.
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2025.06.07 00:21Disclaimer:
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