The facts behind Trump's push for the Fed to cut rates

Jerome Powell holds a news conference following a two-day Federal Open Market Committee meeting in Washington U.S

Jerome Powell holds a news conference following a two-day Federal Open Market Committee meeting in Washington U.S

Speaking at the Council on Foreign Relations in NY on Tuesday, . he explained that appropriate measures will be taken to maintain the expansion, . while the Fed closely monitors current economic developments.

U.S. Federal Reserve Chairman Jerome Powell has reinforced the possibility of cutting interest rates, . but stressed the Fed will not respond immediately to short-term and temporary changes.

Last week, the Federal Reserve chose to leave interest rates unchanged, and even suggested in its official statement that a cut may be in the foreseeable future.

Iran said Trump's decision Monday to impose additional sanctions on Iran had closed the door to diplomatic negotiations.

After raising rates four times last year, which Trump and some on Wall Street have blamed for a big drop in stocks in last year's fourth quarter, most investors believe Powell and the Fed are on track to do what Trump wants anyway - cut interest rates - to help protect the USA economic expansion.

Zandi also said that foreign investors might become anxious about the attacks on Powell before US investors do.

The United States hopes to re-launch trade talks with Beijing after Trump and his Chinese counterpart Xi Jinping meet in Japan during the G20 summit on Saturday but Washington will not accept any conditions on tariffs, a senior administration official said on Tuesday.

Likewise, Dax, the German stock index also tripped by 0.15 per cent.

"But neither side is ready to end the war", Kelly said, predicting trade tensions would linger until the US presidential election in November 2020.

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USA stocks rose through much of the session, but Wall Street gave back gains and the benchmark S&P 500 and Dow industrials closed lower.

Gold dipped, snapping a six-session streak of gains.

Commerzbank strategists said a 50-basis-point cut would indicate the Fed was in a hurry, increasing the likelihood more would be coming than the market expected.

US gold futures settled 0.2% lower to $1,415.40, but remained above $1,400. The Fed chairman emphasized that policy is under review but did not tip his hand on a rate cut.

"If they start to cut rates it will not boost economic growth and very likely it's the start of serious cuts, not just one", he said. Three months after these crosses, the S&P 500 Index has traded higher 100% of the time, logging an average return of 4.3%, according to a CNBC analysis of Kensho, a machine-learning tool used by Wall Street banks and hedge funds to identify potential trading profits from historical trading patterns.

Against the Japanese yen, for example, traders have built up large option bets between 107.50 to 107 yen.

US crude oil futures edged up to a four-week high of $58.87 per barrel after data showed a decline in USA crude stocks.

For example, the CEIC shows that business confidence in the USA dropped by 13.2 percent year-on-year (y/y) in May, after decreasing of 10.2 percent y/y in April.

Oil prices rose more than 2%, buoyed by USA government data that showed a much larger-than-expected drawdown in US crude inventories and surprise drops in refined product stockpiles. U.S. West Texas Intermediate (WTI) crude futures rose $1.55 to settle at $59.38 a barrel.

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