by admin | Mar 28, 2025 | economic policy, economics, inflation, macroeconomics policy, politics
WASHINGTON, D.C. — A top Federal Reserve official stated on Thursday that it appears “unavoidable” that Donald Trump’s tariff proposals will lead to higher near-term inflation, though this rise might not last long.
After coming back to the White House, Trump has issued threats about imposing tariffs on major trade allies — such as China, Canada, and Mexico — but then partially rescinded these measures, leading to uncertainty among both investors and political figures.
He has levied a 25 percent duty on steel and aluminum imports, declared a 25 percent tariff on incoming cards, and intends to implement additional tariffs the following week.
“Tariffs appear certain to drive up inflation in the short term,” said Boston Fed President Susan Collins at an event held in Boston.
“If an uptick in pricing levels filters through to inflation rather swiftly,” stated Collins, who holds a voting position on the Federal Reserve’s interest-rate setting panel this year. “Subsequently, fundamental inflationary pressures will start playing out.”
“So my basic perspective is shaped within that framework,” she went on, noting that should further tariff rounds occur or become wider-ranging, the resulting inflationary effects might likely “linger longer.”
Collins’ remarks mirror those of her fellow Federal Reserve member and St. Louis Fed President Alberto Musalem, who similarly holds a voting position on the U.S. central bank’s interest-rate committee this year.
On Wednesday, Musalem contended that tariffs might cause a probable immediate and short-term rise in prices, along with an additional indirect effect that could exert a more enduring influence on inflation.
The team at the St. Louis Fed calculated that the overall impact on inflation might be as high as 1.2 percentage points — a considerable rise considering that inflation continues to stay above the Federal Reserve’s longstanding objective of 2%.
The Federal Reserve has a two-part mission to address both inflation and unemployment, mainly through adjusting its primary interest rate up or down.
If inflation remains stuck above the Fed’s target and the labor market remains relatively healthy, the Fed could be forced to pause rate cuts for longer, which would keep the cost of borrowing for both consumers and businesses elevated.
Surveys measuring consumer confidence have indicated a significant drop following President Trump’s return to office, as participants expressed worries regarding the impact of tariffs on the economy and voiced concerns over increasing inflation rates.
Earlier this month, Fed officials penciled in two rate cuts this year, while raising their inflation outlook and cutting their forecast for economic growth.
by admin | Mar 28, 2025 | economics, government, international trade, politics, politics and government
MANILA, Philippines – Trade Secretary Ma. Cristina Roque plans to meet with her American peer to address the possible negative effects on the economy due to President Trump’s suggested reciprocal tariffs, which have unsettled financial markets and heightened anxiety among traders and investors.
“I have scheduled a meeting with my peer. Therefore, I am merely awaiting the details of the appointment,” Roque stated to journalists during his break at the Asia CEO Forum on Thursday when questioned regarding the matter.
Roque mentioned that things will continue “as normal” for the moment, dismissing worries regarding the impact of the tariffs set to begin next week.
READ:
Surge of Trump tariffs expected to impact family finances
“So, let’s keep doing what we’re doing, focus on the bright side, and continue to develop and truly elevate ourselves. We should also seek out opportunities to genuinely become experts in our field,” Roque stated.
Trump just announced a 25-percent tariff on imported vehicles and automotive parts, effective April 3.
The automotive sector in the United States has raised worries that such actions could result in increased vehicle costs along with decreased availability, causing shares of leading companies like General Motors and Ford to decline after the news was released.
Trump defended the tariffs as a step to safeguard American manufacturing positions and suggested the possibility of imposing additional duties on various sectors.
In the case of the Philippines, these duties might bring about considerable economic impacts.
As the United States is a key market for Philippine exports, notably in the automotive industry.
In 2024, the Philippines shipped around $1.89 billion worth of machinery and electric goods to the United States, as stated in a CPBRD document. The CPBRD serves as the research wing of the House of Representatives.
The Philippines is cautious about the new U.S. tariff policy since the country exports significantly more than it imports from the United States, leading to a trade surplus of $4.9 billion in 2024, which marks a 21.8 percent rise compared to the prior year.
This excess might attract unwelcome notice from the Trump administration, viewing trade surpluses as evidence of imbalanced trading tactics.
by admin | Mar 28, 2025 | economics, exports, finance news, international trade, philippines economy
MANILA — The trade gap in the Philippines narrowed to its smallest size in almost four years during February, driven by continued growth in exports albeit at a reduced rate along with a decline in imports, according to initial government statistics released on Friday.
According to the Philippine Statistics Authority, the trade shortfall decreased to $3.15 billion in February, marking the lowest level since June 2021. The deficit for January underwent a slight revision upwards to $5.12 billion from an initially stated figure of $5.08 billion.
In February, exports climbed by 3.9%, amounting to $6.2 billion, which was a deceleration from January’s increase of 6.3%. On the other hand, imports dropped by 1.8% year-over-year to reach $9.4 billion, contrasting with the prior month’s expansion of 11.2%.
The economy grew at an annual rate of 5.2% during the last quarter of 2024, maintaining the same speed as in the prior period yet falling short of what analysts had anticipated. The administration plans to publish the first-quarter growth data on May 8.
— Reported by Karen Lema; Edited by John Mair
by admin | Mar 28, 2025 | business, customs, economics, international economics, international trade
New Delhi [India], March 28 (ANI):
Finance Minister
Nirmala Sitharaman
On Thursday, they stated that the continuous process of streamlining
customs duties
And removing the 6 percent equalization levy, which started in 2023, is unrelated to any worldwide occurrences and will proceed as planned.
Sitharaman stated that reducing custom duties is a component of India’s larger aim to reinforce its position as a leading manufacturing center and enhance capabilities in batteries and advanced chemical processes.
In response to a discussion about the Finance Bill 2025 in the Rajya Sabha, Sitharaman stated, “Budget by budget, we continue to decrease tariffs with the aim of supporting India’s ambition to become a leading manufacturing center. This also aids in developing capabilities for battery production and advanced chemical processes. It is part of our ongoing efforts.”
“I’ve noticed several members mention, ‘Oh, the
tariff
conflict has begun, thus as a reaction to the
tariff
Announcements made by President Trump, this initiative has been underway since 2023. We’ve continued to make steady progress each year. New products are continually introduced with consideration for both Atmanirbhar Bharat and the needs of Viksit Bharat, along with streamlining custom duties and easing compliance procedures,” stated Sitharaman.
“Therefore, this is a continuous process. It is not related to the current worldwide circumstances but is something that will persist into the future,” she noted.
India lowered customs tariffs on numerous goods and abolished them.
equalisation levy
of 6 per cent
From the Oval Office, the president made a substantial policy announcement
Donald Trump
has announced a 25 percent
tariff
On every vehicle brought into the U.S., a step he referred to as “highly thrilling” for local production.
The
tariff
Starting on April 2, this regulation will affect almost fifty percent of all vehicles sold in the United States, encompassing even those from domestic brands manufactured abroad. This comprehensive policy seeks to encourage automotive companies to build additional manufacturing plants inside U.S. territory.
Industry insiders caution that the
tariff
This outcome might have extensive repercussions. Autos Drive America, an advocacy body for global automobile producers active in the U.S., voiced significant reservations regarding the possible aftermath.
“The
tariff
As a result, this could increase the cost of manufacturing cars,” the statement read, “which might lead to higher prices for customers, decreased variety in options available, and possible upheavals in employment sectors.
The statement has the potential to heighten trade disputes with major car-producing countries such as those in Europe, Japan, and South Korea. These nations ship significant volumes of automobiles to the U.S. market and could perceive this move unfavorably.
tariff
As a direct challenge to their car manufacturing sectors.
Economists predict the
tariff
This could raise vehicle costs by thousands of dollars, putting additional pressure on consumers who are already struggling with ongoing inflation. Such action would mark a significant intrusion into the auto industry, possibly altering worldwide car production tactics.
President Trump stayed optimistic regarding the policy, saying, “Anyone with operations in the United States will benefit from this.”
As the automotive sector and international markets adjust to this major policy shift, other companies, particularly those based in India, are preparing for even larger transformations.
Earlier, US President
Donald Trump
targeted India’s auto import
tariff
As stated during his address to Congress, he said, “We face auto tariffs imposed by India.”
tariff
“exceeding 100%,” he declared, adding that a retaliatory tariff would be implemented on April 2. He stated that the US has suffered unfair treatment at the hands of almost every nation globally for many years and pledged not to allow this to continue. (ANI)
Provided by Syndigate Media Inc. (
Syndigate.info
).
by admin | Mar 27, 2025 | business, economics, investing, money, wealth
The renowned real estate mogul Lee Shau Kee, often referred to as Hong Kong’s second wealthiest individual, offered advice to younger generations, urging them to select their careers wisely, put in diligent effort, invest capital to generate more wealth, and delay marriage.
In his 2018 address at Fudan University upon receiving an honorary doctorate, Lee offered four key tips for accumulating wealth, as reported.
Sohu
.
One of these principles was not to get married until building a stable career. Lee joined the real estate sector when he turned 30 and swiftly established a robust reputation, attaining success in his professional life.
He married his wife, the beauty queen Lau Wai Kuen.
A year later, once he believed that both his professional journey and personal relationships had stabilized, they got married. The ceremony took place at the luxurious Majestic Hotel located in Hong Kong’s Central District.
|
|
Lee Shau-kee, Chairman of Henderson Land Development, participates in a meeting in Hong Kong, China on September 10, 2013. The photograph was taken by Imaginechina through AFP.
|
During his address, the businessman stated that selecting the appropriate profession could simplify achieving success, echoing a well-known Chinese proverb: “A man’s biggest worry is setting up shop in an unsuitable field, whereas a woman’s primary concern is picking the incorrect spouse.”
A key piece of wisdom from Lee emphasizes that dedication and effort pave the way to achievement. His memoir released in 2010 featured this insight when he was an 82-year-old business magnate from Hong Kong who declared his plans never to retire. To him, the inability to be productive represented significant suffering. Throughout his life, he stayed committed to his professional endeavors.
until the age of 91 when he retired
to relish his latter years.
The fourth piece of advice from the billionaire is to leverage your funds to generate more income. As mentioned in his autobiography, Lee stated: “Commencing with modest savings is wise since the initial investment holds significant importance. This foundational step paves the way for greater achievements.”
Such prosperity should stem from hard work and thriftiness. The notion of ‘abundance bestowed by destiny’ isn’t about surrendering to chance, but rather about seizing opportunities appropriately without exerting undue pressure.
He added: “Once someone asked me, ‘Would you be willing to exchange half of your fortune for three decades of youthful vigor?’ Upon hearing this query, I burst out laughing and responded, ‘I’d readily swap 99% of my wealth for thirty more years of youth without giving it a second thought.'”
In the next three decades, I am confident that I might attain an even more remarkable level of success, potentially exceeding the 99% of wealth I currently possess.
Lee died on March 17.
At the age of 97. He was born in Guangdong, China, and developed his career and thrived in Hong Kong.
Commonly known as “the stock deity of Asia” or “Hong Kong’s equivalent of Warren Buffett,” he founded Henderson Land Development, which stands out as one of the biggest property conglomerates in the region.
by admin | Mar 27, 2025 | business, economics, global economy, politics, us economy
The United States’ GDP increased by 2.4% in the final quarter of 2024, marginally surpassing the initial estimate of 2.3%.
However, it remains uncertain if the US will be able to maintain steady economic expansion as President Donald Trump engages in trade conflicts, reduces the size of the federal workforce, and pledges large-scale deportations of immigrants who are working unlawfully within the country.
The Commerce Department stated that the GDP growth slowed down to a rate of 3.1% during October-December 2024 compared to the previous quarter.
Throughout the entire year of 2024, the economy, being the largest globally, expanded by 2.8%, which was slightly less than the 2.9% growth recorded in 2023.
Consumer expenditure increased at a rate of 4%, up from 3.7% during the third quarter of 2023. However, business investments declined, primarily due to an 8.7% decrease in equipment purchases.
A decline in business stockpiles reduced the fourth-quarter GDP growth by 0.84 percentage points.
A specific segment of the GDP data reflecting the economy’s fundamental resilience increased at a robust 2.9% annual pace in the final quarter, slightly down from the government’s initial projection of 3.2%, and below the 3.4% growth recorded in the preceding quarter.
This classification encompasses household expenditures and individual investments yet omits fluctuating elements such as export figures, stock levels, and governmental outlays.
The report released on Wednesday indicated persistent inflationary pressures towards the close of 2024. The Federal Reserve’s preferred measure of inflation, the Personal Consumption Expenditures (PCE) Price Index, saw an uptick at an annual pace of 2.4%, marking an increase from 1.5% in the previous quarter and exceeding the Federal Reserve’s targeted figure of 2%.
excluding fluctuating food and energy costs, often referred to as core PC inflation, stood at 2.6%, up from 2.2% in the previous quarter.
The government released its third and final assessment of fourth-quarter GDP on Thursday.
The forecast has become more overcast. Trump’s choice to impose tariffs on various goods, including a 25% duty on imported vehicles revealed on Wednesday, might lead to increased inflation and disturb investments, thereby impeding economic expansion.
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