Fed Chair Powell: Need to Reconsider Employment and Inflation Strategies in Current Monetary Policy
Fed Chair Powell said that given the inflation experience in the past few years and the fact that supply shocks and related price increases may become more frequent in the coming years, Fed officials believe that they need to reconsider the key elements around employment and inflation in the current monetary policy approach. Fed Governor Barr said that the US economic foundation is solid and the inflation rate is falling back towards the Fed’s 2% target, but trade policies cast a shadow over the outlook.
US Retail Sales Slow Sharply in April and PPI Drops Unexpectedly as Tariff Policies Begin to Curb Demand
US retail sales growth slowed sharply in April as the boost from families’ rush to buy cars before the implementation of tariffs gradually faded, and consumers cut back on other expenditures against the background of uncertain economic prospects. The US Bureau of Statistics said that after retail sales were revised up to a 1.7% increase in March, they rose slightly by 0.1% in April, with a year – on – year growth of 5.2%. Retail sales excluding autos, gasoline, building materials, and food services decreased by 0.2%, compared with a 0.5% increase in March. Other data showed that the wholesale prices of services such as air tickets and hotel rooms fell last month, also indicating that demand is weakening, which is not conducive to the economic recovery in this quarter.
Trump Visits the UAE and Signs Another $200 – Billion Deal, Signs AI Agreement
President Trump of the United States promised to strengthen the relationship between the US and the UAE and announced that the two countries have reached deals worth more than $200 billion in total and deepened cooperation in the field of artificial intelligence (AI). After Trump met with UAE President Mohammed, the White House said that the deals announced by Trump include Etihad Airways’ commitment to invest $14.5 billion to buy 28 Boeing 787 and 777X aircraft, and use GE Aerospace engines.
Putin Refuses to Meet Zelensky, and the Turkey Peace Talks Are Hard to Break Through
Russian President Putin refused to have a face – to – face meeting with Zelensky in Turkey on Thursday. Instead, he sent a delegation of second – level officials to participate in the planned peace talks. Zelensky said that Kiev will send a delegation led by the defense minister. This will be the first direct talk between the two sides since March 2022. But President Trump of the United States said that if he does not hold talks with Putin, there will be no progress, which further dampens the hope of a major breakthrough. US Secretary of State Rubio later expressed the same view, saying that Washington has “low expectations” for the talks.
Trump Says US Close to Nuclear Deal with Iran
President Trump of the United States said on Thursday that the US is very close to reaching a nuclear deal with Iran, and Tehran has also “to some extent” agreed to the terms of the deal. However, an Iranian source said that there are still gaps that need to be bridged in the negotiations with the US. The talks between Iranian and US negotiators to resolve the dispute over Tehran’s nuclear program ended in Oman on Sunday. Officials said that further negotiations are expected due to Tehran’s blatant insistence on continuing uranium enrichment activities.
