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US President Donald Trump speaks while signing an executive order in the Oval Office of the White House to impose 25% tariffs on all US imports of steel and aluminum, broadening his trade restrictions to some of the country’s top trading partners.Bloomberg | Bloomberg | Getty ImagesAs President Donald Trump ratchets up the rhetoric over tariffs against top international trading partners, fears of unintended consequences for the U.S. and world economy are running high.”This is a sledgehammer approach to trade negotiation,” said William George, director of research at ImportGenius.But the simplest explanation for Trump’s approach — which ranges from tariffs…

Federal Reserve officials in January agreed they would need to see inflation come down more before lowering interest rates further, and expressed concern about the impact President Donald Trump’s tariffs would have in making that happen, according to meeting minutes released Wednesday.Policymakers on the Federal Open Market Committee unanimously decided at the meeting to hold their key policy rate steady after three consecutive cuts totaling a full percentage point in 2024.In reaching the decision, members commented on the potential impacts from the new administration, including chatter about the tariffs as well as the impact from reduced regulations and taxes. The…

U.S. President Donald Trump speaks at Mar-a-Lago in Palm Beach, Florida, U.S., Feb. 18, 2025. Kevin Lamarque | ReutersPresident Donald Trump said he may broaden the scope of U.S. tariffs on imports to include automobiles, pharmaceuticals and semiconductors.In remarks to reporters Tuesday, Trump said the duties would be around 25% and “go very substantially higher over a course of a year.” The president did not indicate whether the new tariffs would apply to all vehicles coming into the U.S. or be targeted toward certain countries but said they could start as early as April 2.However, the threat represents a broadening in…

Fannie Mae and Freddie Mac, two pillars of the U.S. mortgage market, are currently controlled by the federal government. Some in Washington, D.C. expect President Trump to push for the end of their conservatorship.”We have a mortgage finance system that works really well on the upside, but is it prepared for a downturn?” said Mark Calabria, former director of the Federal Housing Finance Agency from 2019 to 2021. “While I am optimistic about the overall state of the economy, are we putting the taxpayer at risk?”Fannie Mae and Freddie Mac create financial products that support the mortgage market and reduce…

Treasury yields traded slightly lower on Wednesday as the Federal Open Market Committee meeting minutes showed officials were ready to hold interest rates steady until further improvement on inflation.The 10-year Treasury yield dipped less than 1 basis point to 4.535%, while the 2-year Treasury yield pulled back 2.3 down 3 basis points at 4.274%.One basis point is equivalent to 0.01%, and yields and prices move in opposite directions.Minutes from the Federal Reserve’s most recent policy meeting showed that central bank officials agreed they would need to see inflation come down more before lowering interest rates further. They also expressed concern about the impact…

Michael RaceBusiness reporter, BBC NewsGetty ImagesUK inflation jumped sharply in the year to January, driven by rising food prices, air fares and an increase in private school fees.The higher-than-expected jump to 3% from 2.5% in December, means prices rose at the fastest pace for 10 months.Food staples such as meat, eggs, butter and cereals were all more expensive than a year ago and comes as many households prepare for higher energy and water bills later this year. Following the latest figures, the government warned that the road back to low inflation would be “bumpy”, but the Conservatives and Liberal Democrats…

Traders on the floor of the New York Stock Exchange at the opening bell in New York City on Feb. 12, 2025. Angela Weiss | Afp | Getty ImagesStock market investors enjoyed lofty annual returns over the past two years. However, 2025 may not offer a “three-peat,” investment analysts say.The S&P 500 stock market index yielded a 23% return for investors in 2024 and 24% in 2023. Those returns were 25% and 26%, respectively, with dividends.Three consecutive years of total returns of more than 20% for U.S. stocks is a historical rarity. It has only happened once — in the late…

Domestic energy prices are forecast to rise by 5% from April, adding £85 a year to household bills, according to consultancy Cornwall Insight.The forecaster, which is widely regarded for its accurate predictions, said a household using a typical amount of gas and electricity would pay £1,823 a year.The figures emerged as Energy Secretary Ed Miliband wrote an urgent letter to Ofgem, the regulator which sets the price cap, asking it to move quickly to protect consumers.The predicted higher prices will take effect at the same time as increases to water and council tax bills in April.However, minimum wage levels will…

U.S. Treasury yields were higher Tuesday after a day’s holiday, as investors looked toward the Federal Open Market Committee meeting minutes later this week and digested a bond sell-off in Europe.The 10-year Treasury yield gained 8 basis points at 4.556%, while the 2-year Treasury yield advanced more than 4 basis points at 4.308%. One basis point is equivalent to 0.01%, and yields share an inverse relationship with prices.The move higher comes after European bond yields increased significantly Monday on expectations that countries across the region will hike their defense spending.Investors will also be watching the Fed meeting minutes, slated for release…

Average wages are continuing to outpace inflation with pay packets rising for both the public and private sector workers, official figures show.Pay, after taking into account the pace of price rises, rose 3.4% between October and December compared with the same period a year ago, according to the Office for National Statistics (ONS).The UK’s unemployment rate remained unchanged at 4.4%, although the ONS has advised that its jobs figures should be treated with caution because of low response rates to its employment survey. The figures follow warnings from businesses that they are planning to cut workforces and raise prices ahead…