Powell: No Rush on US Interest Rate Cuts – Business Live
Federal Reserve Chair Powell signals patience; interest rate cuts are not imminent. The US economy’s current trajectory allows the Fed to adopt a cautious approach, analyzing incoming data before making any moves. This stance, discussed in-depth in the Business Live post, underscores the complexities of navigating inflation and maintaining economic stability. Investors and analysts eagerly await Powell’s further insights. Understanding the forces driving this decision is crucial, as the primarykeyword, interest rate cuts, could have significant impacts. For more details and market analysis, rely on News Directory 3. The secondarykeyword, economic stability, further highlights that the Fed’s decisions remain data dependent, affecting markets everywhere. what will be the reaction in the coming months? Discover what’s next…
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UK Factory Orders Decline:
The CBI’s Industrial Trends report indicates a drop in orders for UK factories in June. Order books are at their weakest level as January.
A net balance of 33% of manufacturers reported that their total order books were below ”normal” in June, up from 30% in May.
Output also fell across the sector last month, with chemicals, metal products, and mechanical engineering being the main drivers of the decline.
Firms anticipate that the pace of decline will slow over the three months to September.
Total and export order books remained weak in June, with both balances broadly unchanged from last month and below their respective long-run averages.
Manufacturers indicated that stock adequacy for finished goods fell slightly relative to May, with the balance standing below the long-run average.
Expectations for selling price inflation eased this month but they remain above the long-run average.
BoE’s Greene on Inflation:
Megan Greene, a Bank of England policymaker, is concerned that UK inflation may plateau rather than follow a “hump” shape.
She worries that current inflation levels will push up public expectations.
* UK inflation was 3.4% in May, above the Bank’s 2% target.