The week was a whirlwind of economic and political events that kept the markets on their toes. From tariff concerns voiced by Sen. Mitch McConnell (R-Ky.) to Federal Reserve Chair Jerome Powell‘s firm stance on inflation, the week was filled with significant developments. Let’s dive into the top stories of the week.
Mitch McConnell Criticizes Trump’s Tariff Plans
Senator Mitch McConnell expressed his apprehensions over President Donald Trump's tariff policies, warning of a potential trade war and subsequent price inflation for U.S. consumers and businesses. McConnell’s concerns were voiced in an op-ed published in Louisville's Courier-Journal. Trump, known for his support of tariffs, recently implemented widespread import duties on Canada, Mexico, and China, along with additional tariffs on steel and aluminum imports.
Powell To Congress: Fed ‘Not There Yet’ On Inflation
Federal Reserve Chair Jerome Powell reiterated a firm stance on the central bank’s monetary policy path, indicating that while inflation is moderating, it hasn’t cooled enough to justify rate cuts. Powell hinted that further progress is needed to reach the Fed’s 2% inflation target.
Justin Trudeau Slams ‘Unacceptable’ US Tariffs
Canadian Prime Minister Justin Trudeau highlighted the adverse effects of the U.S. steel and aluminum tariffs and warned of a strong response if required. Trudeau criticized the recent tariffs calling them "Unacceptable" and said, "Canadians will stand up strongly and firmly if we need to."
Inflation Rises More Than Expected In January
Price pressures surged more than expected in the first month of the year, fueled by increases in both energy goods and underlying service items, dampening investor expectations for Federal Reserve interest rate cuts. The headline Consumer Price Index rose to 3% year-over-year in data released Wednesday.
Trump-Putin ‘Highly Productive’ Call Sparks Oil Sell-Off
A high-stakes call between President Donald Trump and Russian President Vladimir Putin sent shockwaves through markets, dragging down oil prices and U.S. defense stocks as investors reacted to Trump’s surprise announcement of imminent peace negotiations to end the war in Ukraine.
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This story was generated using Benzinga Neuro and edited by Ananya Gairola
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