Treasury
Trump pressures Powell again for rate cuts, borrowing costs rise with Treasury yields
U.S. President Trump on Monday again publicly criticized Federal Reserve Chair Powell, accusing him of failing to cut rates promptly and calling him a "loser." Trump's remarks came as his senior economic advisers explored the possibility of removing Powell. In market reaction, the 10-year Treasury yield rose to 4.4%, and the dollar index fell 1%. Powell has repeatedly emphasized the Fed's independence and pointed out that factors such as tariffs could push up inflation and weigh on the economy.
IRS Acting Commissioner Removed, Adding to Turmoil in Agency Restructuring
The Trump administration's restructuring of the Internal Revenue Service (IRS) has taken another unexpected turn: Acting Commissioner Gary Shapley was removed just days after taking office, replaced by Treasury Deputy Secretary Michael Faulkender. This marks the fourth leader of the IRS since Trump took office in January. Amid a wave of high-level departures and large-scale layoffs, concerns are growing over the agency's service capacity and the outlook for tax collection.
AFP Survey: Significant Rebound in Paper Check Usage by U.S. Businesses in 2024
The Payments Fraud and Control Survey Report released by the Association for Financial Professionals (AFP) on April 15 shows that in 2024, paper check usage by U.S. businesses rose significantly from 75% in 2023 to 91%, but checks remain the most commonly involved payment method in fraud. The report states that the reason is unclear, speculating that some businesses may mistakenly believe paper payments are safer.
Moody's Chief Economist: Trade War Pushes US Economy to the 'Brink' of Recession
Moody's Chief Economist Mark Zandi warned Thursday that the Trump administration's global tariff policy has pushed the US economy to the 'brink' of recession, with a 60% probability of recession. If the trade war does not ease within weeks, the US and global economies could fall into recession. Tariffs could raise unemployment and push inflation up by 2 percentage points. JPMorgan also gives a 60% probability of recession. The Atlanta Fed estimates a 2.2% contraction in first-quarter GDP. Former Treasury Secretary Summers highlighted the four major costs of tariffs.
Powell: Tariffs may push up inflation and unemployment, Fed faces dual-mandate trade-off
Federal Reserve Chairman Powell said on Wednesday that policy changes such as tariffs by the Trump administration could push up unemployment and exacerbate inflation for the remainder of 2025, while noting that the impact of tariffs on inflation could be persistent.
Warner Music's New CFO Receives $1 Million Signing Bonus
Warner Music Group announced that Armin Zerza, former Chief Financial Officer of Activision Blizzard, will assume the role of Group CFO on May 5, succeeding former CFO Brian Castellani, who stepped down after less than two years in the position. Zerza's compensation package includes a base salary of $1.2 million, a target annual bonus of $1.8 million, annual restricted stock units of $6 million, as well as a one-time signing bonus of $1 million and stock option awards of $4 million.
NABE Survey: US Inflation Rate May Rise to 3.3% This Year Amid Tariff Shock
A survey released Monday by the National Association for Business Economics (NABE) shows that economists expect the US core PCE inflation rate to rise to 3.3% in 2025, up 0.5 percentage points from the March forecast; the GDP growth forecast has been lowered to 1.3%. 37% of surveyed economists believe the probability of a recession is no less than 50%. Federal Reserve Governor Waller stated that tariff policy is one of the biggest shocks to the US economy in decades, but the policy direction and its impact remain highly uncertain.
FASB Sets Effective Dates for Derivatives Accounting Standard Updates
The Financial Accounting Standards Board (FASB) voted this week to advance a derivatives accounting standard update, clarifying that certain ESG-linked financial instruments, research and development, and litigation financing arrangements will no longer be subject to derivatives accounting rules. The new requirements apply to all entities for annual and interim reporting periods after December 15, 2026. The update aims to curb "scope creep" in current standards and responds to supportive comments from companies such as Ford and Eli Lilly.
Trade war worries drag down consumer confidence, inflation expectations surge to highest since 1981
A survey released by the University of Michigan on April 11 shows consumer confidence plunged 11% this month, with inflation expectations surging to the highest level since 1981. The survey ended on April 8, before Trump announced a pause on reciprocal tariffs for most trading partners. Despite the tariff pause, the US-China trade war continues to escalate, with cumulative US tariffs on China reaching 145% and China retaliating at 125%. Federal Reserve official Williams warned that tariffs would push inflation up to 3.5%-4% and drag GDP growth below 1%.
China to Raise Tariffs on US Imports to 125%
China's Ministry of Finance announced on Friday that it will impose a 125% tariff on US imported goods starting Saturday, in response to the US raising tariffs on Chinese goods to 125%. The Ministry stated that the US actions violate trade rules. Since President Trump announced a 34% tariff on China, tariffs between the two countries have escalated rapidly, with China taking multiple countermeasures. The Ministry issued another statement hinting that if the US imposes further tariffs, China may not follow suit, as the 125% tariff has already made US goods uncompetitive in the Chinese market. The WTO predicts that trade between China and the US could decline by 80% and warns that global GDP may shrink by nearly 7% in the long term.