Trump’s Treasury Priorities: Yields Over Rates

US Treasury Secretary Scott Bessent made it clear in a Fox Business interview that both he and President Donald Trump are focusing on 10-year Treasury yields rather than pressuring the Federal Reserve to lower interest rates. He emphasized that increasing energy supply and reducing the budget deficit will be the administration’s approach to taming inflation and managing debt costs.

ECB’s Next Move: A Crucial Signal for Euro-Zone Rates

The European Central Bank is set to provide key guidance today on where euro-zone interest rates are headed. Earlier comments from ECB policymaker Mario Centeno suggest that the bank may need to push rates below neutral levels to stimulate economic growth further.

Bank of England Rate Cut Expected

The Bank of England is widely expected to cut interest rates by 25 basis points to 4.5%, while also downgrading its economic growth forecasts. However, inflation projections remain on the rise, keeping markets on edge. Interestingly, gold reserves held by the central bank are trading at a discount, adding another layer of intrigue to today’s decision.

UK’s Nuclear Power Push for Economic Growth

The United Kingdom is set to ease approval processes for nuclear power plants, aligning with Prime Minister Keir Starmer’s plan to boost economic growth, lower energy bills, and support decarbonization efforts. This move is part of a broader strategy to ensure long-term energy security and stability.

Trump’s Tariff Plans: A Growing Concern for the UK

The unpredictability of Trump’s tariff threats is becoming a major headache for Keir Starmer’s government. As trade relations remain uncertain, UK businesses and policymakers are bracing for potential economic turbulence.

Geopolitical Focus: Gaza Reconstruction Plans

Following Trump’s controversial comments on US involvement in Gaza, his aides are now downplaying the suggestion, calling it a creative thought process rather than a concrete policy proposal. Meanwhile, Egyptian President Abdel-Fattah El-Sisi has reassured French President Emmanuel Macron that Egypt is moving swiftly to support Gaza’s reconstruction efforts.

Stay tuned for more updates as global economic and political shifts unfold.