From Fed’s Rate Decision to Trade Tensions: A Recap of the Week’s Top Economic News
Last week, global markets closely monitored a flurry of economic data. Here’s a breakdown of the key highlights:
- Fed Signals Potential Rate Cut Despite Rising Inflation: The U.S. Federal Reserve kept its benchmark interest rate unchanged at its highest level in 23 years. Despite acknowledging rising inflation, the Fed hinted at a potential reduction in rates, lowering expectations from three rate cuts to one this year. Fed Chair Powell described recent inflation data as “progress,” but emphasized they weren’t yet confident enough to start easing monetary policy.
- Bank of Japan Maintains Interest Rates: The Bank of Japan opted to keep its interest rates unchanged while hinting at potential reductions in government bond purchases.
- China Responds to Tariffs Imposed by Turkiye: China’s Ministry of Commerce called for the removal of tariffs imposed by Turkiye on Chinese passenger vehicles.
- Elon Musk Threatens to Ban Apple Devices: Elon Musk, owner of Tesla, SpaceX, and other companies, announced plans to ban Apple devices from his companies if their operating system integrates with OpenAI, citing potential security risks.
- Fitch Comments on France: Snap Election Decision Increases Uncertainty: Fitch Ratings highlighted that French President Emmanuel Macron’s decision for a snap election has heightened uncertainty around the country’s fiscal consolidation path and expectations for further economic reforms.
- Record High Reserves at CBRT: The Central Bank of the Republic of Turkiye (CBRT) reported its gross reserves reaching a historic peak of $146.2 billion.
- Turkiye Records Highest Monthly Current Account Deficit in Nine Months: According to data from the Central Bank of Turkiye for April, the country’s current account deficit widened to $5.3 billion, marking the highest monthly deficit in nine months. The annualized current account deficit also rose moderately to $31.5 billion. Core current account data showed a deficit for the first time in eleven months, with the net errors and omissions continuing in April.
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Source: Bloomberght / Prepared by Irem Yildiz
