The Building of the Federal Reserve Marrner S. Eccles in Washington, DC, USA, on Thursday, September 12, 2024.
Stefani Reynolds | Bloomberg | Getty images
The majority (including this newsletter) sees an independent central bank as the basis of a functional economy. Officials direct the economy calibrating the reference interest rate in which there are bank loans and mortgages, among other debts.
Corporations and consumers, in general, such as low interest rates because the cost of loans is cheaper. The first is encouraged to expand and invest, which, in turn, tends to increase income and spending among the seconds. But such behavior can overheat the economy, which makes prices fire.
The repeated calls of the president of the United States, Jerome Powell, the president of the Federal Reserve, to reduce interest rates, companies and happy people, at the cost of letting inflation work again. Take into account Trump’s tariffs, which are taxes on imports and, therefore, increases in fundamental prices, and inflation could be receiving two shots in the arm.
That is why central bankers tend to operate independently of the government. An administration that aims to please the population could in spite of high inflation, which leads to more economic difficulties.
It is a help market in the United States and Europe that were at a break for Good Friday’s holidays when Trump made his comments.
What you need to know today
Trump again requires Powell to reduce rates
The president of the United States, Donald Trump, said Friday that “if we had a Fed president who understood what he was doing, interest rates would also decrease.” The White House said Friday that officials are evaluating that those who can remove the Fed chair. This is not the first time that Trump criticizes Powell’s approach to the monetary policy of the United States.
Growing disapproval or economic management of Trump
According to a CNBC or 1,000 American survey, 55% or respondents disapproved the management of the economy by Trump, the first time in any CNBC survey that only has negative in the economy while the president. More Americans now believe that the economy will make it worse at any time since 2023, and are very pessimistic about the stock market, according to the results of the surveys.
Economic activity could “fall” in summer
The economy of the United States could be experiencing a high level of activity now, since buyers and companies are supplied in the goods before the tariffs are activated, the president of the Fed of Chicago said on Sunday, Austan Goolsbee. “The activity may seem artificial in the initial, and then for the summer, it could fall, because people have bought everything.” The most affected sectors include the automotive industry and the electrical components, Goolsbee said.
Executive order to review the State Department
The Trump administration could soon implement radical changes in the United States Department of State, according to an executive order of a 16 -page draft obeyed by CNBC. If promulgated, the order will close the US embassies in southern Africa, it would eliminate offices that work on issues such as democracy and human rights, as well as international organizations such as the United Nations.
Us to impose rates on ships built by the Chinese
The Trump administration in Thorsday announced tariffs on vessels built by the Chinese after an investigation carried out by the Biden Trump administrations found that China’s acts, policies and practices were not reasonable and a burden or restricted US trade. The new rates charges are based on the net tonnage of a ship. The rates will be charged once for a trip and not per port, as originally proposed.
Ukraine signs the scheme or mineral agreement with the US.
Yulia Svyrydenko, Minister of Economic Development and Commerce of Ukraine, said Thorsday that the country and the United States had signed a “memorandum of intention” that was the basic agreement of an agreement for both nations to jointly develop the natural resources of Ukraine. However, on Friday, the Secretary of State of the United States, Marco Rubio, said that the United States will move away from trying to negotiate the days of a Peace Agreement in Russia-Uuraine unless there are clear signs that an agreement can be made.
[PRO] Profit can move rates as a approach
Market turns due to Trump tariffs could be subjected, but not completely decreased, this week, according to strategists. The attention of investors will resort to the profit reports of the first quarter, with Tesla and Alphabet announcing their performance on Tuesdays and Thursdays, respectively.
And finally …
Smart Robotic Arms works on the production line in the production workshop or Changqing Auto Parts Co., Ltd., located in the Anqing Economic Development Zone, Anhui Province, China, on March 13, 2025.
Nurphoto | Nurphoto | Getty images
Where ‘made in China 2025’ lost the brand
When Beijing launched its “Made in China 2025” plan in 2015, it was with important international criticism for the promotion of Chinese businesses at the expense of its foreign counterparts. Subsequently, the country minimized the initiative, but the development of national technology has been doubled given restrictions in the United States In recent years.
Since he launched the plan, China has exceeded its objectives to achieve domestic domain in the cars, but the country has not yet achieved its objectives in aerospace, high -end and the growth rate of added value manufacturing, said the European Chamber of Commerce in China in a report last week, citing its investigations and discussions with the members.
Of the ten strategic sectors identified in the report, China only reached technological domain in naval construction, high -speed rail and electric cars.