8 h. ago Powell pushes back on calls for Fed rate cuts as soon as July

US central bank chair tells congressional committee economy remains ‘solid’ but tariffs could push up prices

Politics

8 h. ago Federal Reserve chair defends holding interest rates after fresh Trump attacks

Jerome Powell says central bank is waiting to see tariffs’ impact on US prices as president claims ‘incompetence’The Federal Reserve is well placed to wait and see how tariffs affect US prices before cutting interest rates, its chair, Jerome Powell, insisted, defying renewed demands from Donald Trump.The US president has disregarded the central bank’s longstanding independence to repeatedly call for rate cuts to spur economic growth and launch a series of personal attacks on Powell. Continue reading...

Politics

11 h. ago Powell to push back on calls for Fed rate cuts as soon as July

US central bank chair to tell congressional committee economy remains ‘solid’ but tariffs could push up prices

Politics

11 h. ago Premium Bonds prize fund rate will be cut from August, NS&I announces

One finance expert said the ‘writing has been on the wall’ for Premium Bond prizes since a recent Bank of England base rate cut.

Politics

36 h. ago New call to cut income tax rate in half for people earning under £50,000

An online petition is also urging the UK Government to increase the Personal Allowance to £15,000.

Economics

4 d. ago Top Federal Reserve official calls for rate cuts as soon as July

Governor Chris Waller says US has yet to see an inflation ‘shock’ from Donald Trump’s tariffs

Politics

4 d. ago UK grocery watchdog investigating Amazon over alleged supplier payment delays; company insolvencies jump – business live

Groceries Code Adjudicator calls on suppliers to share their experiences of working with AmazonThe number of companies collapsing across England and Wales jumped last month, in a sign of the economic pressures hitting firms.There were 2,238 company insolvences in England and Wales during the month, which is 8% higher than in April and 15% more than in May 2024.“This latest rise in corporate insolvencies reflects the harsh reality many businesses face: fragile demand is not keeping pace with rising costs. Even the increasingly-likely prospect of rate cuts in August won’t do much to fix this – insolvency levels will remain elevated for the foreseeable future.“Sectors like hospitality are having a particularly challenging time in this environment, in no small part due to the impact on labour costs of April’s National Insurance and minimum wage increases. These businesses are now approaching what are some of their peak months and will be hoping for strong trading to bolster their resili...

Economics

5 d. ago Voices: Don’t panic, chancellor – there’s still hope for interest rate cuts

Forget homeowners with tracker mortgages or those desperate for a better deal – the person who’s hurting the most from the Bank of England’s decision not to lower interest rates is Rachel Reeves, says James Moore

Politics

5 d. ago Swiss cut key interest rate by a quarter percentage point, putting its target now at 0%

Switzerland’s central bank says it has cut its target interest rate by a quarter of a percentage point, adding inflationary pressures have eased

Events

5 d. ago UK interest rates expected to remain on hold; rate cuts in Norway, Switzerland and the Philippines – business live

Central bankers warn that trade war worries, and conflict in the Middle East, could hurt growthNewsflash: We have a third interest rate cut this morning!Norway’s central bank has surprised analysts by cutting its policy rate by a quarter of one percentage point, to 4.25%. The rate had been set at 4.5% since December 2023.“Inflation has declined since the monetary policy meeting in March, and the inflation outlook for the coming year indicates lower inflation than previously expected.A cautious normalisation of the policy rate will pave the way for inflation to return to target without restricting the economy more than necessary.”“The uncertainty surrounding the economic outlook is now greater than normal. If the economy takes a different path than currently envisaged, the policy rate path may be adjusted. But our objectives stand firm. We will finish the job and ensure that inflation is brought all the way back to 2 percent.”The Monetary Board also noted indications of a deceleratio...

Politics

5 d. ago Bank of England expected to leave interest rates on hold as Middle East conflict pushes up oil price – business live

Rolling coverage of the latest economic and financial news, as Switzerland and Philippines cut interest ratesNewsflash: We have a third interest rate cut this morning!Norway’s central bank has surprised analysts by cutting its policy rate by a quarter of one percentage point, to 4.25%. The rate had been set at 4.5% since December 2023.“Inflation has declined since the monetary policy meeting in March, and the inflation outlook for the coming year indicates lower inflation than previously expected.A cautious normalisation of the policy rate will pave the way for inflation to return to target without restricting the economy more than necessary.”“The uncertainty surrounding the economic outlook is now greater than normal. If the economy takes a different path than currently envisaged, the policy rate path may be adjusted. But our objectives stand firm. We will finish the job and ensure that inflation is brought all the way back to 2 percent.”The Monetary Board also noted indications of...

Economics

6 d. ago Federal Reserve holds interest rates, defying Trump’s demand to lower them

Hours before the decision, the president called the Fed’s chair, Jerome Powell, ‘stupid’ for anticipated rate holdThe US Federal Reserve kept interest rates on hold, but signaled it might make two cuts this year, as Donald Trump continues to break with precedent and demand lower rates.Policymakers at the American central bank lifted their projections for inflation this year, as the US president stands by his controversial tariff plans, and downgraded their estimates for economic growth. Continue reading...

Politics

6 d. ago Donald Trump calls for huge rate cuts as he calls Fed’s Powell ‘stupid’

US president asks whether he can ‘appoint myself’ at the central bank hours ahead of policy decision

Politics

6 d. ago Donald Trump calls for huge rate cuts and says Fed chief is ‘stupid’

US president attacks Jay Powell and asks whether he can ‘appoint myself’ at the central bank hours ahead of policy decision

Politics

6 d. ago Trump calls Fed Chair Jerome Powell ‘a stupid person’ ahead of key interest rate decision

The Federal Reserve is set to keep interest rates the same despite Trump’s desire to see a rate cut

Politics

1 week ago Slump fears fuel summer interest rate cut hopes as figures show economy shrank by 0.3% in April

Experts said the setback added weight to the case for a reduction in August. Rate-setters meet next week but few think a cut will come that soon.

Politics

1 week ago UK’s FTSE 100 share index hits record closing high despite economy shrinking in April – business live

UK economy shrank by 0.3% in April, biggest fall since October 2023, as trade with the US slumped.. but FTSE 100 ends at new record closeFull story: UK economy shrinks by 0.3% as as exports hit by Trump trade warNicholas Hyett, Investment Manager at Wealth Club, blames “a cocktail of headwinds to growth” for the 0.3% fall in UK GDP in April.Hyett says:In the very short term the change to Stamp Duty rules have put the legal and property services on ice - with legal activities down 10.2% month-on-month.New barriers to trade with the US and changes to employment costs, from a higher living wage and increased national insurance contributions, are a longer term challenge.“The 0.3% m/m fall in real GDP in April supports our view that the strength in Q1 was unsustainable. This won’t prompt the Bank of England to cut interest rates next Thursday. But it is one more piece of news pointing to another cut in August.”We still expect the Bank Rate to be maintained at 4.25% in the June meeting, t...

Economics

1 week ago Largest ever plunge in UK exports to US as Trump tariffs hurt growth; dollar hits three

UK economy shrank by 0.3% in April, biggest fall since October 2023, as trade with the US slumpedFull story: UK economy shrinks by 0.3% as as exports hit by Trump trade warNicholas Hyett, Investment Manager at Wealth Club, blames “a cocktail of headwinds to growth” for the 0.3% fall in UK GDP in April.Hyett says:In the very short term the change to Stamp Duty rules have put the legal and property services on ice - with legal activities down 10.2% month-on-month.New barriers to trade with the US and changes to employment costs, from a higher living wage and increased national insurance contributions, are a longer term challenge.“The 0.3% m/m fall in real GDP in April supports our view that the strength in Q1 was unsustainable. This won’t prompt the Bank of England to cut interest rates next Thursday. But it is one more piece of news pointing to another cut in August.”We still expect the Bank Rate to be maintained at 4.25% in the June meeting, to allow still troubling earnings growth ...

Politics

2 w. ago Donald Trump calls for ‘full point’ rate cut after jobs report

Renewed attack on Federal Reserve comes after official data shows weakening employment growth

Politics

2 w. ago ECB cuts interest rates to 2% in effort to bolster flagging eurozone growth

European Central Bank makes eighth quarter-point cut in a year as bloc reels from impact of Trump’s trade warsBusiness live – latest updatesThe European Central Bank has cut interest rates to 2% in an effort to boost flagging economic growth across the eurozone.The ECB, making its eighth quarter-point cut in a year, said the 20-member currency bloc needed a reduction in the cost of borrowing as it reeled from the damage caused by Donald Trump’s trade wars. Continue reading...

Politics