As U.S. President Donald Trump returns to office, the Federal Reserve faces mounting political pressure to reduce interest rates. However, all indicators suggest that the central bank will maintain its cautious approach, preserving its independence despite the increasingly tense political climate.
For the first time in three years, the U.S. economy contracted in the first quarter of 2025, shrinking by 0.3% on an annualized basis, according to preliminary estimates released by the Bureau of Economic Analysis under the Department of Commerce.
In a widely expected move, the Bank of Japan kept interest rates unchanged during its regular policy meeting on Thursday, while lowering its economic growth forecasts for fiscal years 2025 and 2026 amid rising uncertainty linked to U.S. tariffs and their potential impact on the global economy.
The World Gold Council revealed that central banks continued to show strong demand for gold, purchasing around 244 tonnes in the first quarter of 2025. This marks a notable decline of 21% compared to the same period last year, which recorded 309.9 tonnes.
During his second term, President Donald Trump implemented a series of economic policies that led to significant volatility in global financial markets. One of the most notable of these policies was the imposition of tariffs on various countries, including China, Canada, and Mexico, which had immediate effects on financial markets.
Gold prices continued to decline last weeks record highs, as a renewed appetite for risk emerged across global markets amid signs of easing trade tensions.
Global markets are facing unprecedented pressures amid the escalating tensions between U.S. President Donald Trump and the Federal Reserve. In the midst of this conflict, concerns are rising about the potential impact of political pressures on the Feds independence, which could lead to serious consequences for the U.S. economy.
The Peoples Bank of China PBOC announced on Monday that it would maintain its benchmark market-linked interest rates unchanged for the sixth straight month, in line with broad analyst expectations.
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