Global News: US Fed Holds Rates, China's Nukes, Trump's Rate Rant
Colaboradores
Here's a quick roundup of some of the top global news stories making headlines:
China Silent on Nuclear Arsenal Growth
Beijing is keeping tight-lipped after a think tank report indicated China possesses the world's fastest-growing nuclear arsenal. A foreign ministry spokesperson stated China adheres to a self-defence strategy, maintaining its nuclear force at the minimum level required for national security and refraining from participating in an arms race. The spokesperson, Guo Jiakun, made these remarks at a regular press conference, as reported by Reuters.
Washington Post Probes Cyberattack
The Washington Post is currently investigating a cyberattack targeting the email accounts of some of its journalists. According to sources and an internal memo reviewed by Reuters, the intrusion was discovered on Thursday. Executive editor Matt Murray informed employees that the newspaper immediately launched an investigation.
As a precaution, all employees had their passwords reset on Friday. Murray added that the intrusion is not believed to have affected any additional Post systems or customers. The newspaper also enforced a credential reset for all Washington Post employees on Friday night.
US Federal Reserve Expected to Keep Rates Steady
Bond investors anticipate that the Federal Reserve will hold interest rates steady this week. This expectation is leading them to move away from longer-dated Treasuries, as they temper expectations for aggressive easing given a perceived lower chance of a US recession.
This shift also reflects concerns about increased US Treasury supply and recent hawkish signals from the European Central Bank. Investors are recalibrating their portfolios in anticipation of the Fed's decision.
Trump Slams Fed Chair, Pushes for Rate Cut
Former U.S. President Donald Trump has renewed his criticism of Federal Reserve Chair Jerome Powell, labelling him a "numbskull" for not lowering interest rates. Trump has repeatedly pressured Powell to cut rates, arguing that higher rates are costing the U.S. more money in debt payments. He even summoned Powell to the White House to voice his concerns directly. While Trump has been critical, he has also stated he won't fire Powell, despite disagreeing with his monetary policy decisions.
Trump cited inflation data as justification for his demands, claiming the numbers were "incredible". Powell, however, has maintained that he won't take politics into account when setting monetary policy.