May 7, 2025
United States:
Fed to Hold Rates Steady as Pressures Mount
Federal Reserve officials are widely expected to leave interest rates unchanged Wednesday as they await clarity on the Trump administration’s trade policies, a move likely to frustrate the president and anyone else seeking answers about the US central bank’s next move.
An aggressive slew of tariffs on imported goods is denting consumer confidence, with households bracing for a potential spike in consumer prices and a weakening job market.
Europe:
German Factory Orders Rose Ahead of Trump’s Tariff Push
German factory orders rose more than predicted in March, signalling improvement in the run-up to the US tariff announcements that have clouded the outlook for Europe’s largest economy.
Demand increased 3.6% from February, beating the median 1.3% estimate in a Bloomberg survey. Without major orders, the gauge was up 3.2%, the statistics office said Wednesday.
Asia:
China Cuts Key Rate, Reserve Ratio to Aid Economy Hit by Tariffs
China reduced its policy rate and lowered the amount of cash lenders must keep in reserve, as Beijing ramps up efforts to help an economy caught in a second trade war with the US.
The People’s Bank of China cut the seven-day reverse repurchase rate to 1.4% from 1.5%, according to Governor Pan Gongsheng.
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