President Donald Trump didn't hold back in criticizing the Federal Reserve's latest decision to raise interest rates and took a jab at the European Union for reportedly inviting Canada as an 'associate member.' On Wednesday, the Federal Reserve decided to increase rates by 25 basis points. Trump, however, was not impressed and questioned the central bank's independence, calling the other Fed governors 'very hostile, very political.'
Federal Reserve Chair acknowledged the persistent issue of high inflation, suggesting there might be more rate hikes later this year. But Trump wasn't convinced. He expressed doubts about the board's decisions, saying, 'I'm relying on Kevin, but he's got, you know, a very tough board, he's got a board that was put there by other people.' He went on to add, 'You might as well vote with the board. It's not going to matter.'
On Thursday, financial markets showed a bit of a rebound. Stock futures pointed to a positive opening in the U. S. and Europe. This was a relief after a tough session on Wednesday when the Dow Jones Industrial Average took a hit, closing over 600 points down. The global equities market offered a generally positive outlook, which could help claw back some of the previous day's losses.
Meanwhile, Trump was not pleased with the EU's gesture towards Canada, calling it a 'hostile act.' He went as far as to threaten more tariffs on Europe or even halting trade if he sees the move as antagonistic. 'I think it's laughable... Canada has been a terrible trade partner, ' he commented after landing in North Carolina. He warned European leaders, 'If I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things.'
Elsewhere, the Bank of England is expected to keep its interest rate steady at 3.75% on Thursday. This remains despite Governor Andrew Bailey's caution about inflation risks still leaning 'on the upside.' Over in Japan, yields on short-dated government bonds have climbed to their highest since 1995. This is happening as the Bank of Japan eyes a potential rate hike on Friday.
In the energy sector, oil prices took a dip in early Thursday trading. This drop came after Saudi Arabia announced plans to make additional crude cargoes available to Asian refiners. The aim is to ease the current supply crunch.
Turning to Russia, President Vladimir Putin is preparing for a significant electoral test. The country is set to hold its first parliamentary election since it launched a full-scale invasion of Ukraine in early 2022. The election will run from Friday to Sunday, and it's likely to solidify the ruling United Russia party's control over the 450-seat State Duma. While the outcome seems almost certain, international observers will be watching closely for voter turnout and the margin of victory to see if there's any sign of public unrest amid the prolonged conflict.
