The past week has been a whirlwind of economic and political events. From the Federal Reserve’s rate cut to the re-election of Donald Trump, the landscape of the U.S. economy has been significantly shaped.
Here’s a quick recap of the top stories that made headlines over the weekend.
Furman’s Inflation Warning
Jason Furman, a key economist from the Obama administration, expressed skepticism about the Federal Reserve’s risk assessment. He pointed out that the core PCE inflation is above the target and warned that it could further rise. This could potentially disrupt the Fed’s planned rate reduction schedule unless there’s a significant weakening in the labor markets.
Powell’s Firm Stand
Amidst speculations about his potential resignation following Trump’s victory, Federal Reserve Chair Jerome Powell firmly dismissed such rumors. He stated that the president cannot legally fire the central banker and made it clear that he has no plans to leave his position.
See Also: Trump’s Historic Return: 7 Ways His Second Term Could Impact The US Economy
Trump’s Tax and Tariff Plans
President-elect Trump has hinted at replacing income taxes with tariffs. His specific plans concerning tariffs and taxes are unclear and have varied greatly. However, he has consistently promoted a 10% worldwide tariff and a 60% tax on imported Chinese goods.
Roaring 2020s Scenario
Trump’s election victory has led to a surge in the U.S. stock market, setting the stage for what some analysts call a new “Roaring 2020s.” Analysts and investors speculate that Trump’s planned corporate tax cuts and deregulation could fuel a prolonged rally in the stock market.
US Services Sector Growth
The U.S. services sector’s economic momentum is firing at all cylinders, with business activity in October reaching its strongest level in over two years. The Services PMI surged to 56% in October 2024, up from 54.9% in September, defying expectations of a dip to 53.8%.
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This story was generated using Benzinga Neuro and edited by Ananya Gairola
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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