Trump and his loyalists remain un appeased by Powell's Peace Proposal, as asserted by ALEX BRUMMER.
In the world of economics, several significant events are unfolding. Let's delve into some of the key developments across the Atlantic and discuss a few investment opportunities.
In Britain, Chancellor Rachel Reeves is considering a potential move to alleviate financial burdens by removing Value Added Tax (VAT) from power bills. This comes as inflation in the country is currently rising at the fastest rate among the G7 nations, with food and alcohol prices up by 5.1%. This increase in prices is particularly affecting working people who spend a larger portion of their income on groceries.
On the other side of the pond, US President Donald Trump is pressing for interest rate cuts from the Federal Reserve. The Fed recently reduced interest rates by a quarter-of-a-percentage point, but Trump is demanding a reduction of three full percentage points. The Fed has been criticised for being slow to raise interest rates during the pandemic and being behind the curve since then.
Trump has also expressed dissatisfaction with Federal Reserve Chairman Jay Powell and has voiced his intention to pack the Open Markets Committee with his own appointees. Moreover, Trump has targeted Lisa Cook, the first Black woman on the Federal Reserve's governing board, for removal over alleged mortgage infringements. However, courts have blocked her dismissal, as Fed governors can only be removed "for cause," and the firing was seen as politically motivated and without proper legal basis.
Meanwhile, the Bank of England is unlikely to lower the bank rate today due to the latest inflation data. Service sector inflation and wage bills are edging down, but not enough for Governor Andrew Bailey to consider lowering interest rates.
In the midst of these economic uncertainties, the service sector and housing market are suffering due to the Fed's slow response to lower interest rates. This has led to a sluggish employment market, which could pose challenges for businesses and individuals alike.
For those interested in investing, there are several DIY investing platforms available in the UK. AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 are some of the platforms that offer a variety of investment options. It's essential to research and understand the risks associated with each platform before making any investment decisions.
Lastly, Unilever, the parent company of Ben & Jerry's, is planning an exit from ice cream under the Magnum Ice Cream rubric. The company is aiming for an initial public offering and does not want to be entangled in any geopolitical issues that could interfere with its plans.
Affiliate links may be present in this article, but this does not affect the editorial independence of the content. It's always recommended to conduct thorough research and make informed decisions when it comes to your finances.
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