U.S. President Donald Trump said on Friday he may have to change his mind about firing Federal Reserve Chairman Jerome Powell. Trump made the comment in a lengthy social media post criticizing the Federal Reserve's decision to not lower interest rates. "I don't know why the Board doesn't override," Trump wrote. "Maybe, just maybe, I'll have to change my mind about firing him?
U.S. President Donald Trump said on Friday he may have to change his mind about firing Federal Reserve Chairman Jerome Powell. Trump made the comment in a lengthy social media post criticizing the Federal Reserve's decision to not lower interest rates. "I don't know why the Board doesn't override," Trump wrote. "Maybe, just maybe, I'll have to change my mind about firing him?
The close split at the U.S. Federal Reserve over whether to keep hedging against inflation risks or move forward faster with rate cuts came through on Friday in the first public comments from policymakers following a decision this week to hold borrowing costs steady for now.
-The fundamentals of the U.S. economy are moving to where an interest rate cut may be necessary, San Francisco Federal Reserve Bank President Mary Daly said on Friday, though she signaled a July rate cut would probably be too early.
The Brazilian real lost ground on
Friday but still looked poised to notch its third straight week
of gains after a surprise interest rate hike earlier in the
week, while tumbling crude prices dragged ...
-Mexico's central bank is expected to cut its key interest rate by half a percentage point again in its announcement next week, although it would moderate the pace of monetary tightening going forward amid rising inflation and weak economic growth.
* Iran war concerns boosts demand for Treasuries. * Trump to decide on Iran response in next two weeks. * Fed's Waller says bank should consider cutting rates. By Karen Brettell.
-A measure of future U.S. economic activity fell in May for the sixth straight month and triggered a recession signal, held down by consumer pessimism, weak new orders for manufactured goods, an uptick in jobless benefits claims and a drop in building permit applications.
-A measure of future U.S. economic activity fell in May for the sixth straight month and triggered a recession signal, held down by consumer pessimism, weak new orders for manufactured goods, an uptick in jobless benefits claims and a drop in building permit applications.
* Fed's Waller is open to cutting rates in July. * Barkin says no rush to cut. * Daly says the fall may be more appropriate for a rate cut. * Tariff rates, impact on inflation still unresolved. By Howard Schneider and Michael S. Derby.
Russian President Vladimir Putin evoked the words of Mark Twain on Friday when asked about the health of the Russian economy, saying that rumours of its death had been greatly exaggerated. Putin pointed to GDP growth of 4.1% last year.
Richmond Federal Reserve President Thomas Barkin said on Friday there's no rush to cut interest rates given the still-unresolved risk that new import taxes might raise inflation, and with the U.S. job market and consumer spending holding up.
Richmond Federal Reserve President Thomas Barkin said on Friday there's no rush to cut interest rates given the still-unresolved risk that new import taxes might raise inflation, and with the U.S. job market and consumer spending holding up.
-The Federal Reserve's latest Monetary Policy Report to Congress, released on Friday, said U.S. inflation is somewhat elevated and the labor market is in solid shape, but suggested that President Donald Trump's tariffs have likely only begun to be felt and repeated the central bank's view that it can wait for more clarity before taking action.
-The Federal Reserve's latest Monetary Policy Report to Congress, released on Friday, said U.S. inflation is somewhat elevated and the labor market is in solid shape, but suggested that President Donald Trump's tariffs have likely only begun to be felt and repeated the central bank's view that it can wait for more clarity before taking action.
Switzerland said on Friday it will lift a raft of economic sanctions imposed on Syria, including the Middle Eastern country's central bank. After the toppling of former Syrian president Bashar al-Assad in December 2024, targeted sanctions against individuals and entities linked to the former government will still remain in place, Switzerland's governing Federal Council said.
Spanish Defence Minister Margarita Robles said on Friday her country is totally committed to NATO, a day after Madrid asked the alliance to be exempted from the proposed increase in the defence spending target to 5% of gross domestic product.
* Putin says Russia must not let economy slip into recession. * Tells officials to ensure balanced growth for cooling economy. * Pressure mounting on central bank to cut rates more quickly. * Sberbank says it has financed no new projects this year. By Vladimir Soldatkin and Guy Faulconbridge.
European Union finance ministers gave formal support on Friday for Bulgaria to adopt the euro currency, paving the way for the country to become the 21st member of the euro zone from January 1, 2026. The backing of the ministers follows positive assessments of the country's readiness from the European Commission and the European Central Bank.
The close split at the U.S. Federal Reserve over whether to keep hedging against inflation risks or move forward faster with rate cuts came through on Friday in the first public comments from policymakers following a decision this week to hold borrowing costs steady for now.
Investors will focus on the Israel-Iran conflict and U.S. economic data releases next week to assess the near-term outlook for stocks, as the S&P 500 hovers just below its February highs. The S&P 500 has rebounded sharply from its early-April selloff, as tariff-related tensions have eased.
* Futures down: Dow 0.25%, S&P 500 0.28%, Nasdaq 0.31% Wall Street stock index futures edged lower on Friday as investors assessed comments on U.S. military involvement in the Middle East conflict, and Federal Reserve Chair Jerome Powell's warning on rising inflation ahead.
* Israel-Iran tensions raise concerns over potential escalation. * S&P 500 remains near February highs but shows signs of stagnation. * Rising oil prices spark worries about inflation and Fed policy. * Investors look to upcoming U.S. economic data for market direction. By Saqib Iqbal Ahmed.
President Donald Trump's inauguration promise in January that "the golden age of America begins right now" remains unfulfilled in the outlook of Federal Reserve officials who so far see his policies slowing the economy, raising unemployment and inflation, and clouding the horizon with a still-unresolved tariff debate that could deliver a fresh shock in coming weeks.
China's fiscal revenue declined by 0.3% in the first five months of 2025 from a year earlier, finance ministry data showed on Friday, as global trade uncertainty intensified by U.S. tariffs weighed on the economy. Fiscal revenue in the January-May period, totalling 9.66 trillion yuan, was slightly less than the 0.4% drop over the first four months of the year.
* Gold down 2.4% so far this week. * Trump to decide on U.S. action in Israel-Iran war within two weeks. * Gold likely to extend current consolidation phase, analyst says. By Anushree Mukherjee.
Greece's current account deficit shrank to 2.1 billion euros in April compared to the same month a year ago, data from the Bank of Greece showed on Friday.
Rising oil prices, Middle East tensions, a NATO meeting and a testimony by the U.S. Federal Reserve chief all vie for market attention in the days ahead. Here's your heads up on the week in world markets from Alden Bentley in New York, Kevin Buckland in Tokyo, Amanda Cooper and Lucy Raitano in London and Andrew Gray in Brussels. 1/ STRAIT UP WORRIED.
* Gold down 2.2% so far this week. * Dollar set for best week in over a month. * Platinum heads for third straight week of gains. By Brijesh Patel and Anmol Choubey. Gold prices fell on Friday and were on track for a weekly decline, as an overall stronger dollar and the prospect of fewer U.S. interest rate cuts offset support from rising geopolitical risks in the Middle East.
Japanese government bonds moved in a narrow range on Friday as investors weighed strong price data in Tokyo, while a solid outcome of the Bank of Japan's bond buying operation supported sentiment. The 10-year JGB yield inched up 0.5 basis point to 1.415%, after rising to as high as 1.42% earlier in the day.
Investor unease about an increasingly uncertain environment is rising, as Norway's shock rate cut on Thursday highlights how U.S. tariffs, Middle East conflict and a shaky dollar make global monetary policy and inflation even harder to predict. Norway's crown slid roughly 1% against the dollar and the euro in a sign of how unexpected the move was.
* Pass-through of material costs more moderate in Japan than Europe. * Second-round effects moderate but sustained in Japan, Europe. * Slow rate hike could be enhancing second-round effects. * Paper comes amid heightened BOJ focus on creeping inflation. By Leika Kihara.
* May core CPI rises 3.7% yr/yr vs forecast +3.6% * Index excluding fresh food, fuel up 3.3% yr/yr in May. * Board divided on inflation outlook, some see risk of overshoot. * BOJ report says slow rate hike could cause wage-price spiral. * Governor Ueda reiterates BOJ's resolve to keep raising rates. By Leika Kihara.
Gold held steady on Friday, with
geopolitical tensions escalating in the Middle East as Israel
and Iran continued their air war, while investors remained wary
of possible U.S. involvement.
The Federal Reserve took a slightly hawkish turn on Wednesday, indicating it is worried more about rising inflation than slowing growth. The Fed's revised economic projections show that officials expect U.S. unemployment and inflation to rise and growth to slow in the coming quarters.
* May core CPI rises 3.7% yr/yr vs f'cast +3.6% * Index excluding fresh food, fuel up 3.3% yr/yr in May. * BOJ faces challenge of balancing food inflation, US tariff risks. By Leika Kihara. Japan's core inflation hit 3.7% in May, the fastest annual pace in more than two years and keeping pressure on the central bank to resume interest rate hikes.
National Bank of Canada (NTIOF): * NATIONAL BANK OF CANADA ANNOUNCES NVCC SUBORDINATED NOTES OFFERING. * National Bank of Canada (NTIOF) - TO ISSUE $750 MILLION MEDIUM TERM NOTES Source text: Further company coverage:
* BANK OF CANADA TO AUCTION 17 BONDS IN UPCOMING QUARTER, QUARTERLY BOND SCHEDULE SHOWS Source text: https://www.bankofcanada.ca/markets/government-securities-auctions/calls-for-tenders-and-results/bond-auction-schedule/
Investor unease about an increasingly uncertain environment is rising, as Norway's shock rate cut on Thursday highlights how U.S. tariffs, Middle East conflict and a shaky dollar make global monetary policy and inflation even harder to predict. Norway's crown slid roughly 1% against the dollar and the euro in a sign of how unexpected the move was.
* SNB cuts interest rates to zero; BoE keeps rates unchanged. * Norges Bank delivers surprise 25 bps cut. * Bank of England expected to hold rates steady. * Powell warns on inflation risks from tariffs. By Ankur Banerjee and Lucy Raitano.
U.S. President Donald Trump on Thursday reiterated his calls for the Federal Reserve to cut interest rates, saying the rates should be 2.5 percentage points lower. "Jerome Powell is costing our Country Hundreds of Billions of Dollars... The Federal Reserve held rates steady on Wednesday, keeping the benchmark overnight rate in the 4.25% to 4.5% range.
By Jamie McGeever. The Federal Reserve took a slightly hawkish turn on Wednesday, indicating it is worried more about rising inflation than slowing growth. The Fed's revised economic projections show that officials expect U.S. unemployment and inflation to rise and growth to slow in the coming quarters.
The Swiss and Norwegian central banks became the latest European rate-setters to ease monetary policy on Thursday, citing a weaker inflation outlook that contrasted sharply with the Federal Reserve's warnings about higher U.S. prices.
* SNB cuts to zero, puts negative rates in play. * Bank of England stays on hold, sees downward path. * Europe's ebb in inflation contrasts with US price pressure. By John Revill and Terje Solsvik.
Central banks are grappling with elevated uncertainty about economic growth and inflation, complicating decision-making, especially for those trying to calibrate policy as they near the end of their rate-cutting cycles. That's making life hard for investors too. 1/ SWITZERLAND.
* Norway surprises with rate cut. * Switzerland on verge of negative rate territory. * The Fed holds out on rate cuts for now. By Alun John and Naomi Rovnick. Central banks are grappling with elevated uncertainty about economic growth and inflation, complicating decision-making, especially for those trying to calibrate policy as they near the end of their rate-cutting cycles.
European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the United States and the European Union, five sources familiar with the negotiations said. President Donald Trump has announced wide-ranging tariffs on trade partners and wants to reduce the U.S. goods trade deficit with the EU.
The Bank of England held interest rates at 4.25% as expected on Thursday but said it was focused on risks from a weaker labour market and from higher energy prices as conflict escalates in the Middle East. The Monetary Policy Committee voted 6-3 to keep rates on hold.
Euro zone yields were slightly higher on Thursday, as investors focused on a series of monetary policy decisions while watching developments in the Middle East. The U.S. central bank held rates steady as widely expected on Wednesday, with Chair Jerome Powell saying he expected to see more tariff-driven price hikes in coming months.
* Middle East tensions dampen sentiment; dollar firms on safe-haven demand. * SNB cuts interest rates to zero. * Norges Bank delivers surprise 25 bps cut. * Bank of England expected to hold rates steady. * Powell warns on inflation risks from tariffs. By Ankur Banerjee and Lucy Raitano.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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