Gold Price Hits Seven-Week High as Fed Rate Hike Bets Fade and Hormuz Deal Hopes Grow 
Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
Australia Inflation Cools as Core CPI Misses Forecasts, Easing RBA Rate Hike Pressure 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
Fed Holds Interest Rates Steady as Kevin Warsh Says Rising Treasury Yields Tighten Financial Conditions 
Gold Prices Steady as Hormuz Tensions Fuel Fed Rate Concerns 
Japan Services Producer Prices Rise 3.2% in June, Supporting BOJ Rate Hike Expectations 
BOJ Rate Hike Expectations Rise Ahead of September Meeting 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Canada, US Hold Constructive Trade Talks as Tariff Negotiations Continue 
US Job Growth Seen Picking Up in July 
Asian Currencies Hold Steady as US Dollar Nears Seven-Week Low Ahead of Key Jobs Data 
Chicago Federal Reserve President Austan Goolsbee has cautioned that recent inflation data presents a challenge for the U.S. central bank, reinforcing a cautious stance on potential interest rate cuts. Speaking in a recent Fox News interview, Goolsbee emphasized that the Federal Reserve needs stronger evidence that inflation is moving sustainably toward its 2% target before considering any policy easing.
The warning follows the latest Personal Consumption Expenditures (PCE) price index report, the Fed’s preferred inflation gauge, which showed a 3.5% annual increase in March. This higher-than-expected figure highlights persistent inflationary pressures across the U.S. economy. Goolsbee noted that inflation is now spreading into service sectors, which are typically less affected by external factors like tariffs, raising concerns about broader and more entrenched price increases.
Adding to the uncertainty are rising oil prices and ongoing geopolitical tensions, particularly involving Iran, which could further drive inflation higher. Goolsbee remarked that the current inflation trend “doesn’t look good,” signaling that the Federal Reserve may need to maintain tighter monetary policy for longer than markets anticipate.
The Fed’s latest policy meeting reflected growing internal divisions, with officials voting 8-4 to keep interest rates steady in the 3.5% to 3.75% range. This marked the most significant split within the central bank since 1992, largely driven by disagreements over forward guidance. Some policymakers pushed back against language suggesting that the next move would likely be a rate cut, underscoring uncertainty about the future direction of monetary policy.
Complicating the outlook further is an upcoming leadership transition. Kevin Warsh is ожидаing Senate confirmation to replace Jerome Powell as Federal Reserve Chair. Goolsbee expressed optimism about Warsh’s leadership while also praising Powell’s continued role on the Board of Governors, highlighting his experience and balanced approach.
Overall, the Federal Reserve faces a complex environment, balancing persistent inflation, internal policy debates, and leadership changes as it navigates the path forward for interest rates and economic stability.
