🇺🇸 NEW: Donald Trump says the Fed rate is 3% too high, costing the U.S. $360 billion per point annually, and calls for an immediate cut. https://t.co/6cOW4aX1d3 ...

What To Expect From The Fed’s July Interest Rate Decision https://t.co/oBEMRTlMtW https://t.co/oBEMRTlMtW ...

Trade and Tariffs - The market is showing fatigue towards tariff headlines, anticipating room for negotiation in trade talks [2] - The market expects potential trade deals, preferring them over high tariffs, leading to current calmness [3] - Average tariff levels are expected to be slightly higher, but not reaching the high levels seen in early April [5] - Uncertainty remains regarding how much tariffs will be passed on to corporations versus absorbed by consumers, impacting consumer spending patterns [10] Monetary Policy and Fiscal Outlook - The Federal Reserve's September decision will heavily rely on the jobs report [7][8] - Tariffs are seen as a revenue source to fund additional spending, potentially leading the US Treasury to issue more short-term debt to keep funding costs down [13] - Aggressive rate cuts by the Fed could lead to higher back-end yields, advocating for curve steepness [19] - The market is closely watching the private sector's willingness to buy government bonds, as they are now the primary price setters [14][15] UK Gilts Market - Concerns persist regarding the UK's fiscal situation and funding, especially with slowing growth [20] - Stability and the Bank of England's proactive rate cuts could make gilts attractive [22]

Malaysia lowered its benchmark interest rate for the first time in five years, acting after US President Donald Trump increased a threatened tariff on the Southeast Asian country to 25% https://t.co/qSPuj21zG8 ...

Tariff concerns will likely weigh on Malaysia’s currency and economy in the near term, according to analysts, after the country’s central bank cut its benchmark interest rate for the first time in five years. https://t.co/iK7LTQX9fs ...

What To Expect From The Fed’s July Interest Rate Decision https://t.co/rjSuGlRtoy https://t.co/rjSuGlRtoy ...

Uruguay’s central bank cut its benchmark interest rate by a quarter point to 9% and signaled it might further lower borrowing costs if inflation converges with the target. https://t.co/46l9OkYUfX ...

What To Expect From The Fed’s July Interest Rate Decision https://t.co/Rz8EaZEKLa https://t.co/7761dYlwjC ...

Core Insights - The Midyear Outlook 2025 presents a data-driven perspective on the economic and market landscape, emphasizing the need for investors to adapt to ongoing challenges such as inflation and trade uncertainties [2][3][7] - The report suggests that while the economic environment may face adverse effects from trade policies, there are emerging investment opportunities as policy-driven uncertainties begin to stabilize [4][7] Economic Environment - The report indicates that the second half of 2025 will likely see slower economic growth, reduced labor demand, and a slight increase in inflation due to the delayed effects of trade policies [7] - Concerns regarding debt, trade uncertainties, and a cautious Federal Reserve are expected to keep Treasury yields within a range, with a focus on income generation through intermediate-term bonds [7] Investment Strategies - The stock market's performance in the latter half of the year will depend on various factors including trade negotiations, advancements in AI, interest rate fluctuations, and tax policies [7] - Investors are advised to consider market pullbacks as potential opportunities to selectively increase equity positions, despite anticipated volatility in a challenging macroeconomic environment [7] Trends and Opportunities - Tactical portfolios should balance risk management with the pursuit of emerging opportunities, emphasizing diversification across asset classes, regions, and alternative investments to enhance resilience [7] - Staying vigilant during periods of market volatility may provide timely chances to acquire equity at more favorable valuations [7]

The surprise US decision to raise its threatened tariff on Malaysia to 25% means trade will almost certainly dominate the interest rate decision on Wednesday https://t.co/SmQXgR1ELr ...