Fed Governor Waller supports a 25 basis point rate cut in July, amid improving consumer inflation expectations.
The U.S.-EU trade situation remains tense, Trump pushes for a minimum tax of 15%-20%, while Bitcoin and Ethereum continuously reach new highs, attracting significant market interest.
MAIN CONTENT
Fed Governor Waller continues to propose a 25 basis point rate cut to support the economy.
The U.S.-EU trade war escalates, with plans to impose a minimum tariff of 15%-20% on EU goods.
Bitcoin and Ethereum extend their price uptrend, with Bitcoin surpassing $123,000 and Ethereum reaching a peak of $3,600.
What impact does Fed Governor Waller's proposal to cut interest rates by 25 basis points have?
Mr. Waller, a member of the Fed Board of Governors and a strong candidate for the Fed Chair position, affirmed continued support for a 25 basis point rate cut in July to boost economic growth and control inflation.
The interest rate cut will provide additional momentum for the U.S. economy in the current uncertain period, while also helping to ease consumer inflation expectations.
Christopher Waller, Federal Reserve Governor, July 2024
Market data shows that consumer inflation expectations are gradually stabilizing, providing key support for a softer monetary policy strategy. This is seen as a reasonable move amid many global economic fluctuations.
How is the trade war between the United States and the European Union evolving?
The U.S.-EU trade war continues to heat up as the U.S. president pushes for minimum tariffs of 15% to 20% on all EU goods, while also planning to announce detailed sector-specific tariff levels in early August.
These policies put significant pressure on global supply chains and could impact inflation in the United States, increasing uncertainty in the global financial market.
The U.S. tariff policies lack clear final mechanisms and are creating instability, somewhat obscuring the outlook for the economy and inflation.
The ABN Amro economic analysis team, report July 2024
What does Bitcoin and Ethereum reaching record highs indicate?
Bitcoin reached a peak of over $123,000 for the first time in history, while Ethereum surpassed $3,600, maintaining a continuous price increase for four weeks. This is a positive signal for cryptocurrency as the market gradually absorbs regulatory policies and global economic fluctuations.
Ethereum's weeks of outperforming Bitcoin also reflect a shift in investor attention toward DeFi applications and Smart Contracts on this platform.
What are the important economic and political events for next week?
The market has high expectations for key events, including:
10h00 Monday: The Leading Economic Index of the United States for June is announced.
8h30 Tuesday: Fed Chair Powell speaks at a regulatory conference.
1h00 Wednesday: Fed Governor Bowman speaks at a seminar on capital standards for large banks.
Time not yet determined: The President of the United States addresses the event 'Winning the AI Race'.
8h30 Thursday: The number of initial unemployment claims for the week ending July 19 is announced.
In particular, factors related to prices and employment will be closely monitored to assess the impact of tariff policies as well as new monetary policies.
Frequently Asked Questions
1. Is Fed Governor Waller certain about reducing interest rates by 25 basis points in July?
Mr. Waller is a strong candidate and has confirmed support for a 25 basis point cut. However, the final decision still depends on the assessment of the latest economic data and the Fed's policy.
2. How will the new tariffs of the United States on the EU affect the financial market?
Imposing a 15%-20% tariff on EU goods may create upward inflationary pressure, disrupt supply chains, and cause instability in the global financial market.
3. Will the increase in Bitcoin and Ethereum prices be sustainable in the near future?
The upward trend is bolstered by the potential for expanded applications and clearer policies, yet it still requires monitoring of new macroeconomic and legal impacts.
4. What role do U.S. economic indicators next week play in market forecasting?
The Leading Index, unemployment data, and Fed speeches all provide important signals about economic health, impacting monetary policy and financial markets.
5. How will tariff policies affect inflation in the United States?
According to ABN Amro experts, unclear tax policies increase uncertainty, which could make inflation difficult to control in the short term.
Source: https://tintucbitcoin.com/crypto-tuan-sau-powell-chiu-ap-luc/
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