April 23th Financial News
FastBull FeaturedSummary:
Trump softens stance on China tariffs, tariffs likely to see significant reduction; Trump rules out firing Powell, calls for rate cuts; IMF significantly downgrades U.S. growth forecast...
[Quick Facts]
♦ Trump softens stance on China tariffs.
♦ Trump rules out firing Powell, calls for rate cuts.
♦ IMF significantly downgrades U.S. growth forecast.
♦ Trump's "Ukraine-Russia ceasefire proposal" surfaces.
♦ White House signals easing of trade tensions.
♦ Fed rate cut expectations decline for the year.
[News Details]
Trump softens stance on China tariffs
President Donald Trump acknowledged on Tuesday, April 22, that the current tariffs on Chinese imports are too high and signaled that the rates are likely to be significantly reduced. This marks a notable shift in Trump's approach to his signature tariff policy.Additionally, U.S. Treasury Secretary Scott Bessent indicated at a JPMorgan event that the trade tensions between the U.S. and China are expected to cool down soon.
Trump rules out firing Powell, calls for rate cuts
Recent rumors that President Donald Trump was considering firing Federal Reserve Chair Jerome Powell had sparked a significant sell-off in the U.S. stock market. However, on Tuesday, April 22, Trump clarified that he has "no intention" of firing Powell before his term ends in May 2026. Trump emphasized that the media had exaggerated the situation.
Trump also reiterated his call for the Federal Reserve to lower interest rates, stating that the current economic conditions present a "perfect time" for rate cuts. He expressed frustration with Powell's reluctance to act more quickly, saying, "We'd like to see our chairman be early or on time, as opposed to late. Late is not good". Trump argued that with inflation remaining low, the Fed should reduce rates to stimulate economic growth.
Additionally, Trump commented positively on the stock market, noting that it has been performing well.
IMF significantly downgrades U.S. growth forecast
The International Monetary Fund (IMF) released its latest World Economic Outlook report on Tuesday, downgrading its global growth forecast for 2025 from 3.3% at the beginning of the year to 2.8%. This marks the lowest growth projection since the COVID-19 pandemic began in 2020.
The IMF also projected that advanced economies will grow at an aggregate rate of 1.4% in 2025. Specifically, the United States is expected to see its economic growth slow to 1.8% this year, a downward revision of 0.9% from the initial forecast at the start of the year. This slowdown is largely attributed to the impact of President Trump's tariff policies. For 2026, the U.S. growth forecast has been revised downward by 0.4% to 1.7%.
Trump's "Ukraine-Russia ceasefire proposal" surfaces
Diplomats from the United States, the European Union, and Ukraine are set to meet in London on Wednesday to discuss a ceasefire proposal that is likely to spark discontent among Ukrainian officials.
The proposal, reportedly backed by the U.S. government, includes several contentious details: recognizing Crimea as part of Russia, freezing the current front lines, and eventually lifting sanctions on Russia.
White House signals easing of trade tensions
On Tuesday, media reports indicated that the White House has received proposals for 18 trade agreements and plans to hold trade team meetings with 34 countries this week. The administration is reportedly close to reaching tariff agreements with Japan and India, although finalizing these pacts may take several months.
According to sources, the U.S. will push the United Kingdom to reduce its automobile tariffs from 10% to 2.5% and will also urge the UK to ease its agricultural import regulations.
Fed rate cut expectations decline for the year
Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, stated on Tuesday that tariffs could lead to runaway inflation expectations, making it premature to determine the path of interest rates. He also noted that the absence of a trade deficit implies that the United States is no longer the most attractive destination for investment.
In response, U.S. federal funds futures declined, with the December contract falling by nine basis points. This movement suggests that the market currently anticipates an 80-basis-point rate cut from the Fed by the end of the year.
[Today's Focus]
UTC+8 15:15 France April Manufacturing PMI Flash Estimate
UTC+8 15:30 Germany April Manufacturing PMI Flash Estimate
UTC+8 16:00 Eurozone April Manufacturing PMI Flash Estimate
UTC+8 16:30 UK April Manufacturing PMI Flash Estimate
UTC+8 21:30 2025 FOMC Voter, St. Louis Fed President Alberto Musalem and Fed Governor Christopher Waller Deliver Opening Remarks at Event
UTC+8 21:45 US April S&P Global Manufacturing PMI Flash Estimate
UTC+8 22:00 US March New Home Sales Annualized Total (in 10,000 units)
UTC+8 22:30 US EIA Crude Oil Inventories for the Week Ending April 18 (in 10,000 barrels)
UTC+8 02:00+1 Fed Releases Beige Book on Economic Conditions
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