Economy

Fed vs. inflation
Powell: “The economy is in an uncertain situation due to the tariffs”

Jerome Powell held a press conference on Wednesday evening after the Federal Reserve announced that it would leave the interest rate unchanged at 4.25-4.50 percent.

The central bank chief emphasized that the American economy is in an uncertain situation, which is based, among other things, on the changing trade and migration policies.

He stated that Donald Trump’s tariffs will likely push up prices, which could weigh on the economy. The central bank therefore expects a significant increase in inflation in the coming months.

At the same time, he said that the central bank is monitoring economic activity “carefully” and is confident in waiting with more drastic measures until the economy can be predicted better.

– We predict a significant increase in inflation in the coming months when the tariffs are implemented, because someone has to pay the price for them, he said.

Fed leaves interest rates unchanged as expected

As expected, the Federal Reserve leaves interest rates unchanged at 4.25-4.50 percent. The US central bank, just as before, also expects two interest rate cuts later this year. However, the Fed's updated forecast shows that it expects one cut less in both 2026 and 2027. This is stated in a press release.

The central bank writes that the economy has grown at a "steady pace" with "low" unemployment and a "slightly elevated" inflation. At the same time, "uncertainty in economic forecasts has decreased but remains high".

Wall Street traded volatile after the announcement and eventually gave back the day's cautious gains.

Trump: Powell is stupid – interest rates should be two percentage points lower

Ahead of tonight's interest rate announcement, President Donald Trump is sending new verbal jabs at Federal Reserve Chairman Jerome Powell. During a press conference outside the White House, he says that Powell should lower the key interest rate, but that the Fed chairman "probably won't" do so tonight.

- We should be two percentage points lower, says the president.

Trump also says of Powell that "we have a stupid person at the Fed" who "has done a bad job".

Trump repeats earlier statements that the Fed chairman has cost the US up to 800 billion dollars because he has acted too late and that the US has practically no inflation. At the same time, the latest statistics showed that inflation increased again to 2.4 percent in May.

Tariff crisis  Trump's tariff policy
Trade director: EU companies are being held hostage in the trade war

Companies in the EU are being held hostage in the trade war between the US and China. This is what Jens Eskelund, CEO of the EU Chamber of Commerce in China, tells Nikkei Asia.

China's export controls for rare earth metals have not only been directed at the US, but also at Europe, Japan and India, and that they should not reach the US via intermediaries. These have thus found themselves in a pinch between the superpowers, Eskelund continues.

- It obviously does not promote China relations when European companies are being held hostage, he tells the newspaper. 

Saab sales
France wants to buy two Globaleye planes from Saab

The French procurement authority (DGA) intends to buy two Globaleye aircraft and associated ground equipment from Saab. This is stated in a press release.

The declaration of intent also includes an option that gives the country the opportunity to buy two additional aircraft.

According to the DGA, a contract is expected to be finalized within the coming months.