Kevin Warsh, whose broad criticism of current U.S. Federal Reserve officials, playbook for rate cuts and ties to President Donald Trump elevated him past other contenders to lead the central bank, will be sworn in as Fed leader Friday at a pivotal moment for monetary?policy and the American economy.
* Warsh set for Friday morning swearing in at White House. * AI boom and external shocks complicate inflation outlook for Fed. * Warsh facing pressure from markets, colleagues, over rate decisions. * Fed's Waller, a key voice, updates views today. By Howard Schneider.
* PCE inflation gauge due on Thursday. * Salesforce (CRM), Costco, Best Buy (BBY) among reports due as robust Q1 comes to end. * Bond market selloff in view as Treasury yields hit milestones. By Lewis Krauskopf.
Fiscal support measures by euro zone governments that ease the pain of high energy prices should not contradict the European Central Bank's efforts to curb surging infltion8, the chairman of euro zone finance ministers Kyriakos Pierrakakis said. "We certainly all understand that we shouldn't contradict monetary policy.
U.S. stock index futures climbed on Friday as Treasury yields eased, lifting megacaps and chip stocks, though markets watched for signs of a breakthrough in discussions to end the Middle East war. Iran's foreign minister met the interior minister of Pakistan to discuss proposals to end the nearly three-month-old conflict, media reports said.
* Futures up: Dow 0.3%, S&P 500 0.31%, Nasdaq 0.5% U.S. stock index futures climbed on Friday as Treasury yields eased, lifting megacaps and chip stocks, though markets watched for signs of a breakthrough in discussions to end the Middle East war. Iran's foreign minister met the interior minister of Pakistan to discuss proposals to end the nearly three-month-old conflict, media reports said.
* Dollar holds near six-week high on U.S.-Iran uncertainty. * Traders see 41% chance of a 25-bp U.S. rate hike in December. * Trump to swear in Warsh as Fed chair on Friday. * All metals on track for weekly losses. By Noel John.
World markets remain at the mercy of diplomacy as the Iran war approaches the end of its third month with no clear resolution in sight. A host of central banks meanwhile brace for their next moves and inflation data piles the pressure on U.S. and Japan policymakers.
World markets remain at the mercy of diplomacy as the Iran war approaches the end of its third month with no clear resolution in sight. A host of central banks meanwhile brace for their next moves and inflation data piles the pressure on U.S. and Japan policymakers.
* APEC ministers responsible for trade to discuss supply chain resilience, digital trade, AI readiness. * China's record trade surplus and G7 calls for action on imbalances add to tension. * APEC Business Advisory Council urges pause on new trade curbs. * Japan's trade minister attends, marking highest-level visit since last year's diplomatic rift. By Nicoco Chan and Casey Hall.
Europe's push to curb its dependence on U.S. payments giants Visa and Mastercard (MA) has driven a wedge between the European Central Bank and financial firms keen to shield revenues, hobbling efforts to build a home-grown system, several people involved said.
Britain's FTSE 100 index is seen opening higher on Friday, with futures up 0.42%. * BT: Indian conglomerate Bharti Enterprises is seeking to potentially increase its stake in BT to just under the threshold that would require it to make a full takeover offer for the British telecoms group, three people familiar with the matter said.
Japanese government bonds were mixed on Friday, with optimism about a near-term end to the Iran war pulling longer-dated yields lower, while speculation for earlier Bank of Japan tightening lifted shorter-dated yields. Yields globally have been rising with the price of oil as the war stoked worries about inflation.
* US, Iran at odds on key issues. * Trump to swear in Warsh as Fed chair. * Silver heads for weekly gain. * Platinum, palladium face weekly losses. By Pablo Sinha. Gold edged lower on Friday, pressured by a stronger U.S. dollar and as elevated oil prices have raised expectations for interest rate hikes by the U.S. Federal Reserve. Spot gold was down 0.3% at $4,527.60 per ounce, as of 0411 GMT.
Nomura has joined a growing chorus of brokerages expecting the U.S. Federal Reserve to hold interest rates steady in 2026, citing persistent inflation and skepticism that policymakers will rally behind rate cuts.
Gold edged lower on Friday, on track for its second consecutive weekly loss, as higher oil prices and rising concerns around inflation and hawkish interest rates weighed on the metal.
* April core CPI rises 1.4% yr/yr vs forecast +1.7% * Index excluding fresh food, fuel rises 1.9% yr/yr. * Inflation seen re-accelerating on war-induced energy shock. By Leika Kihara.
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* April core CPI rises 1.4% yr/yr vs forecast +1.7% * Index excluding fresh food, fuel rises 1.9% yr/yr. * Inflation seen re-accelerating on war-induced energy shock. By Leika Kihara. Japan's core consumer prices rose 1.4% in April from a year earlier, data showed on Friday, marking the slowest annual pace in four years due largely to the effect of government subsidies on school tuition.
U.S. President Donald Trump will swear in Kevin Warsh as the chair of the Federal Reserve on Friday at the White House, the Trump administration said on Thursday. Warsh was confirmed to the role in a near party-line vote on May 13. Warsh, 56, will serve a four-year term as chair and a 14-year term as a Fed governor.
U.S. President Donald Trump will swear in Kevin Warsh as the chair of the Federal Reserve on Friday at the White House, the Trump administration said on Thursday. Warsh, 56, will serve a four-year term as chair and a 14 year term as a Fed governor.
Brazil's central bank said on Thursday it will offer up to $1 billion in two simultaneous dollar auctions with repurchase agreements on Friday. In a statement, the central bank said the auctions will start at 10:30 a.m. local time, and aim to roll over contracts maturing in June. The repurchases for the auctions are set for September 2 and November 4, according to the monetary authority.
Surging U.S. Treasury yields have prompted mortgage investors to hedge the loans in their portfolios by selling government debt, a shift?that probably exacerbated the bond selloff this week and added to the biggest rate spike in a year.
How businesses and consumers respond to ongoing economic shocks will determine if the U.S. Federal Reserve can "look through" current high inflation or needs to consider raising interest rates, Richmond Fed President Thomas Barkin said on Thursday.
How businesses and consumers respond to ongoing economic shocks will determine if the U.S. Federal Reserve can "look through" current high inflation or needs to consider raising interest rates, Richmond Fed President Thomas Barkin said on Thursday.
When Kevin Warsh takes command of the Federal Reserve, he will do so as some central bank officials and staff have become increasingly anxious about the state of the financial markets and the risk that presents to the economy.
The interest rate on the most popular U.S. home loan shot to its highest since August this week as yields on the government bonds most influential in setting residential borrowing costs have climbed on concern about the inflation being aggravated by the war with Iran.
* Minutes show Banxico board's diverging inflation outlooks. * Some governors see inflation risks from Middle East conflict as limited. * Dissenters urged caution, citing need to assess inflation shocks before further easing. By Brendan O'Boyle and Emily Green.
Uncertainty around the impacts of war in the Middle East dominated the Bank of Mexico's May monetary policy decision, which ended in a split 3-2 vote to cut Mexico's benchmark interest rate, according to minutes from the meeting which were published Thursday morning.
Some U.S. Federal Reserve officials proposed extending a critical, international supply line of U.S. dollars to underpin financial stability, according to an account of their recent meeting. The discussion centred on extending so-called U.S. dollar swap lines, which the Fed has with five major central banks and has become a key backstop for global banking since the financial crisis.
* Iran hardens stance on nuclear issue in peace talks, sources say. * Euro zone bond yields rise as oil prices jump and inflation concerns mount. * PMI data and Nomura economists highlight stagflation risks from Iran war. By Amanda Cooper.
Some U.S. Federal Reserve officials proposed extending a critical, international supply line of U.S. dollars to underpin financial stability, according to an account of their recent meeting. The discussion centred on extending so-called U.S. dollar swap lines, which the Fed has with five major central banks and has become a key backstop for global banking since the financial crisis.
* Oil prices climb over 2% * Iran issues directive on country's near-weapons-grade uranium. * Traders now see 58% chance of at least one rate hike by 2026-end. By Ishaan Arora. Gold prices fell 1% on Thursday as climbing oil prices heightened inflation worries, boosting bets for U.S. rate hikes and lifting Treasury yields and the dollar, which added more pressure on bullion.
* Weekly jobless claims fall 3,000 to 209,000; layoffs remain low despite high-profile tech job cuts. * Continuing claims increase 6,000 to a still relatively low 1.782 million. * Single-family housing starts drop 9.0% in April; building permits decrease 2.6% By Lucia Mutikani.
U.S. manufacturing activity strengthened in May, scaling the highest level in four years, as businesses boosted inventories to guard against potential shortages and rising prices related to the war with Iran. S&P Global said its flash manufacturing PMI increased to 55.3 this month, the highest reading since May 2022, from 54.5 in April.
U.S. single-family homebuilding dropped sharply in April and permits for future construction fell, suggesting the housing market could remain subdued for a while as the Iran war drives up mortgage rates and an oversupply of new houses persists.
U.S. single-family homebuilding dropped sharply in April and permits for future construction fell, suggesting the housing market could remain subdued for a while as the Iran war drives up mortgage rates and an oversupply of new houses persists.
U.S. Treasury yields retraced a portion of their Thursday morning gains after the release of stronger-than-expected economic data, as investors weigh the Iran war's impact on inflation and the U.S. economy.
The number of Americans filing claims for unemployment benefits fell last week, pointing to labor market resilience and giving the Federal Reserve room to focus on surging inflation from the war with Iran. There are no signs yet that employers are responding to rising costs by reducing headcount.
The number of Americans filing claims for unemployment benefits fell last week, pointing to labor market resilience and giving the Federal Reserve room to focus on rising inflation. Initial claims for state unemployment benefits slipped 3,000 to a seasonally adjusted 209,000 for the week ended May 16, the Labor Department said on Thursday.
* Oil prices climb around 3% * Tehran said it was reviewing Washington's latest responses. * Gold has fallen more than 14% since the war began. By Anjana Anil. Gold eased on Thursday, pressured by a stronger U.S. dollar and high Treasury yields, while stagnant peace talks in the Middle East kept oil elevated, inflation concerns alive, and reinforced bets of higher interest rates.
* Euro zone composite PMI lowest since October 2023. * European Commission downgrades forecasts. * War impacts add to domestic worries in UK. By Jonathan Cable and Mark John.
* Iran hardens stance on nuclear issue in peace talks, sources say. * Euro zone bond yields rise as oil prices jump and inflation concerns mount. * PMI data and Nomura economists highlight stagflation risks from Iran war. By Amanda Cooper.
* Two new EX30 battery fires prompt Thai watchdog to weigh civil action. * Volvo faces complaints as customers await battery fixes after global recall. * Repair timelines vary, with some markets waiting until late-2026 for replacements. By Chayut Setboonsarng and Marie Mannes.
* Euro zone composite PMI lowest since October 2023. * Services activity contracted at the sharpest pace since February 2021. * Cost pressures rose sharply due to Middle East war. By Jonathan Cable.
* Oil prices edge higher. * Tehran said it was reviewing Washington's latest responses. * Gold has fallen more than 14% since the war began. By Anjana Anil. Gold ticked lower on Thursday, pressured by a stronger U.S. dollar and high Treasury yields, while stagnant peace talks in the Middle East kept oil elevated, inflation concerns alive, and reinforced bets of higher interest rates.
Economic activity in the euro zone shrank at its sharpest rate in more than two-and-a-half years in May, as a war-driven surge in living costs hammered demand for services and pushed overall input price inflation to its highest in three-and-a-half years, a survey showed on Thursday.
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.
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