Economy

Fed vs. inflation
Inflation is rising – Warsh may be forced to defy Trump

Inflation in the US is on the rise and the new central bank chief Kevin Warsh is now expected to be forced to raise interest rates during one of the upcoming meetings, contrary to Donald Trump's stated desire for cuts. This is reported by Bloomberg.

The inflation measure that the Federal Reserve attaches the greatest importance to is the PCE index, which has risen to its highest level in three years in the wake of the Iran war. In February, inflation was 2.8 percent at an annual rate and it has since climbed to 3.5 percent in March and 3.8 percent in April.

This week, the figures for May will be released and a further rise is expected. This would further increase the probability of an interest rate hike at one of the upcoming meetings, according to Bloomberg experts. 

Middle East Crisis Economic Impact
For Farmers, Iran Deal Came Too Late

For American farmers, the Iran deal comes too late, reports the Washington Post.

Farmers, who make up an important part of Donald Trump's voter base, are already struggling with drought and uncertain soybean exports to China as a result of the tariff war. In recent months, they have also seen the costs of fuel and fertilizer skyrocket as a result of the Iran war.

- There's no joy left in this farming. When you work 16-hour days and then, at the end of the year, you have to borrow money to pay your taxes, there's no fun left in it. It's just not worth it anymore, Tyson, a fourth-generation farmer, told the newspaper.

Despite the US and Iran having agreed on a memorandum of understanding, prices do not look set to fall back, says Josh Linville, vice president of financial and commodity analysis firm Stone X. He believes prices will remain at today's high levels at least until next spring. 

The future of e-commerce
New customs duty makes goods from the US and China more expensive

Soon it will be more expensive for Swedes to buy things from the US and China online. A new customs duty of the equivalent of 33 kronor will be levied on July 1.

Maria Wiezell, an expert in consumer law at the Swedish Consumers Association, urges online shoppers to double-check where the goods they order are actually shipped from.

– If you order from a European site, but that ships from the US or Asia, then there will also be a customs duty, she says.

The customs duty is being introduced after a joint decision by EU finance ministers in December. The aim is to limit the flow of low-priced goods from China.

Swedish jobs
Ericsson's outgoing CEO wants increased Swedish immigration

Sweden needs to increase immigration to strengthen growth, argues Ericsson's outgoing CEO Börje Ekholm in a lengthy interview with SvD Näringsliv.

- If there is something that countries like the USA, and also Sweden, de facto need, it is labor immigration, he says and calls for a return to "more of a normal situation".

Ahead of the autumn elections, he also calls for a greater focus on labor law and sees Denmark's reforms in the area as reasonable.