Market Analysis: GBP/USD Dips as EUR/GBP Accelerates Higher

Summary:

GBP/USD failed to climb above 1.3800 and corrected some gains. EUR/GBP is rising and might climb above the 0.8670 resistance.

Important Takeaways for GBP/USD and EUR/GBP Analysis Today

● The British Pound is showing bearish signs below the 1.3700 support against the US dollar.

● There is a key bearish trend line forming with resistance near 1.3650 on the hourly chart of GBP/USD at FXOpen.

● EUR/GBP is gaining pace and trading above the 0.8600 zone.

● There was a break above a contracting triangle with resistance at 0.8630 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

Market Analysis: GBP/USD Dips as EUR/GBP Accelerates Higher _1

On the hourly chart of GBP/USD at FXOpen, the pair failed to stay above the 1.3750 pivot level. As a result, the British Pound started a fresh decline below 1.3720 against the US Dollar.

There was a clear move below 1.3700 and the 50-hour simple moving average. The bears pushed the pair below 1.3650. Finally, there was a spike below the 1.3600 support zone. A low was formed near 1.3562 and the pair is now consolidating losses.

There was a minor move above the 1.3615 level. On the upside, the GBP/USD chart indicates that the pair is facing resistance near the 1.3650 level. There is also a key bearish trend line forming with resistance near 1.3650.

The next major resistance is near the 50% Fib retracement level of the downward move from the 1.3788 swing high to the 1.3562 low at 1.3675. A close above the 1.3670 resistance zone could open the doors for a move toward the 1.3700 zone. The 61.8% Fib retracement level is at 1.3700. Any more gains might send GBP/USD toward 1.3790.

On the downside, there is a key support forming near 1.3615. If there is a downside break below the 1.3615 support, the pair could accelerate lower. The next major support is near the 1.3560 zone, below which the pair could test 1.3500. Any more losses could lead the pair toward the 1.3440 support.

EUR/GBP Technical Analysis

Market Analysis: GBP/USD Dips as EUR/GBP Accelerates Higher _2

On the hourly chart of EUR/GBP at FXOpen, the pair started a decent increase from the 0.8500 zone. The Euro traded above the 0.8580 resistance level to enter a positive zone against the British Pound.

The pair settled above the 50-hour simple moving average and 0.8620. It traded as high as 0.8670 before a downside correction. There was a move below the 23.6% Fib retracement level of the upward move from the 0.8507 swing low to the 0.8670 high.

However, the pair is stable above the 0.8600 support zone. The next major support is near the 50% Fib retracement level of the upward move from the 0.8507 swing low to the 0.8670 high at 0.8590.

A downside break below 0.8590 might call for more downsides. In the stated case, the pair could drop toward the 0.8545 support level. Any more losses might call for an extended drop toward the 0.8505 pivot zone.

The EUR/GBP chart suggests that the pair is facing resistance near the 0.8635 zone. A close above the 0.8635 level might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8670. Any more gains might send the pair toward the 0.8700 level.

Source：FXOpen

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Economic

Thailand Offers Expedited Trade Deal to Deter Tariff Imposition

Thailand has escalated its diplomatic and economic outreach to the United States in an attempt to prevent the implementation of a 36% export tariff threatened by the Trump administration. The revised trade proposal, submitted just before the expiration of a 90-day tariff suspension, reflects a calculated effort by Bangkok to preserve favorable trade ties with one of its largest partners.

Finance Minister Pichai Chunhavajira confirmed that the new offer includes wider access for US agricultural and industrial products, as well as commitments to purchase more American energy and Boeing aircraft. These gestures are aimed at rebalancing trade flows and addressing US grievances about Thailand’s persistent trade surplus.

Accelerated Timeline to Narrow Trade Surplus

Under the updated proposal, Thailand pledges to reduce its $46 billion trade surplus with the US by 70% within five years, achieving a full trade balance within seven to eight years. This is a notable acceleration from the previous offer, which projected a ten-year timeline for correcting the imbalance. The new targets suggest that Thailand is prioritizing the preservation of market stability and avoiding a disruptive tariff shock over long-term negotiation leverage.

This forward-leaning timeline is not merely symbolic. It reflects a causal response to external political pressure, as Thailand seeks to preempt tariff enforcement by aligning more closely with US economic interests. The immediacy of the commitment to eliminate import tariffs or non-tariff barriers for most goods upon deal acceptance, with slower adjustments for select items, supports this interpretation.

Geopolitical and Economic Stakes at Play

The proposal arrives at a sensitive juncture. With President Donald Trump signaling a more aggressive stance on trade, particularly toward countries with large bilateral surpluses, Thailand faces an urgent need to reposition itself as a cooperative partner. The Trump administration has framed such surpluses as indicators of unfair trade practices, and has wielded tariff threats as a mechanism for enforcing bilateral rebalancing.

The focus on American energy imports and Boeing aircraft purchases further illustrates the strategic calculus behind Thailand’s offer. These sectors represent politically sensitive industries in the US and have historically been focal points in American trade diplomacy. By committing to purchases in these areas, Thailand is appealing directly to constituencies that influence US trade policy.

Implications for Broader US-Asia Trade Dynamics

Thailand’s move may also carry broader implications for other Southeast Asian economies that maintain trade surpluses with the US. If the proposal is accepted and tariffs are avoided, it could establish a framework for other nations facing similar pressure to follow suit. However, it also risks reinforcing a bilateral model of economic negotiation that prioritizes immediate trade balances over multilateral rules and market forces.

The Thai offer reflects not just a willingness to make concessions but also an awareness of the shifting structure of global trade diplomacy. It underscores the growing importance of proactive engagement and targeted reciprocity in avoiding punitive outcomes in a less predictable global trade environment.

Thailand’s revised trade proposal marks a significant diplomatic and economic overture intended to forestall a damaging trade rupture. By offering faster surplus reductions and immediate concessions, Bangkok is not only trying to preserve market access but also repositioning itself in a changing global trade order. Whether this strategy will be enough to satisfy Washington remains to be seen, but it highlights Thailand’s increasing readiness to adapt under mounting geopolitical and economic pressure.

Source: Reuters

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Daniel Carter

Economic

Political

Key points:

● Trump says countries aligning with 'Anti-American policies' of BRICS to face extra tariffs.

● Lula draws parallel with Cold War's Non-Aligned Movement.

● Group condemns rising tariffs, attacks on Iran and Gaza.

● Putin online, Modi and Ramaphosa present.

President Donald Trumpsaid the U.S. will impose an additional 10% tariff on any countries aligning themselves with the "Anti-American policies" of the BRICS group of developing nations, whose leaders kicked off a summit in Brazil on Sunday.

With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive "America First" approach of the U.S. president, the BRICS is presenting itself as a haven for multilateral diplomacy amid violent conflicts and trade wars.

In a joint statement from the opening of the BRICS summit in Rio de Janeiro released on Sunday afternoon, the group warned the rise in tariffs threatened global trade, continuing its veiled criticism of Trump'stariffpolicies.

Hours later, Trump warned he would punish countries seeking to join with the grouping.

"Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!" Trump said in a post on Truth Social.

Trump did not clarify or expand on the "Anti-American policies" reference in his post.

Trump's administration is seeking to finalize dozens of trade deals with a wide range of countries before his July 9 deadline for the imposition of significant "retaliatory tariffs".

The original BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates as members. Saudi Arabia has held off formally joining, according to sources, while another 30 nations have expressed interest in participating in the BRICS, either as full members or partners.

Indonesia's senior economic minister, Airlangga Hartarto, is in Brazil for the BRICS summit and is scheduled to go to the U.S. on Monday to oversee tariff talks, an official told Reuters. India's foreign ministry did not immediately respond to a request for comment.

In opening remarks to the summit earlier, Brazil's President Luiz Inacio Lula da Silva drew a parallel with the Cold War's Non-Aligned Movement, a group of developing nations that resisted joining either side of a polarized global order.

"BRICS is the heir to the Non-Aligned Movement," Lula told leaders. "With multilateralism under attack, our autonomy is in check once again."

BRICS nations now represent more than half the world's population and 40% of its economic output, Lula noted in remarks on Saturday to business leaders, warning of rising protectionism.

GROWING CLOUT, COMPLEXITY

Expansion of the bloc has added diplomatic weight to the gathering, which aspires to speak for developing nations across the Global South, strengthening calls for reforming global institutions such as the United Nations Security Council and the International Monetary Fund.

"If international governance does not reflect the new multipolar reality of the 21st century, it is up to BRICS to help bring it up to date," Lula said in his remarks, which highlighted the failure of U.S.-led wars in the Middle East.

Russian PresidentVladimir Putinis attending online due to an arrest warrant from the International Criminal Court related to his war in Ukraine. Still, several heads of state were gathered for discussions at Rio's Museum of Modern Art on Sunday and Monday, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa.

However, there are questions about the shared goals of an increasingly heterogeneous BRICS group, which has grown to include regional rivals along with major emerging economies.

In the joint statement, the leaders called attacks against Iran's "civilian infrastructure and peaceful nuclear facilities" a "violation of international law."

The group expressed "grave concern" for the Palestinian people over Israeli attacks on Gaza, and condemned what the joint statement called a "terrorist attack" in India-administered Kashmir.

The group voiced its support for Ethiopia and Iran to join the World Trade Organization, while calling to urgently restore its ability to resolve trade disputes.

The leaders' joint statement backed plans to pilot a BRICS Multilateral Guarantees initiative within the group's New Development Bank to lower financing costs and boost investment in member states, as first reported by Reuters last week.

In a separate statement following a discussion of artificial intelligence, the leaders called for protections against unauthorized use of AI to avoid excessive data collection and allow mechanisms for fair payment.

Brazil, which also hosts the United Nations climate summit in November, has seized on both gatherings to highlight how seriously developing nations are tackling climate change, while Trump has slammed the brakes on U.S. climate initiatives.

Source: Reuters

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China Signals Retaliatory Resolve While Preserving Strategic Flexibility

Beijing has formally retaliated against the European Union’s recent curbs on Chinese medical device access to public procurement contracts by announcing reciprocal restrictions. The Ministry of Finance stated that EU-based firms will be barred from participating in procurement for specific categories of medical devices in China. However, the Ministry of Commerce clarified that products manufactured within China by EU companies are exempt demonstrating that the measure is deliberately narrow and leaves room for continued cooperation with multinationals that have invested in local operations.

This selective approach provides strategic ambiguity: while signaling discontent with the EU’s policies, it avoids full-scale escalation. Firms like Siemens Healthineers AG and Royal Philips NV, which have localized production inside China, appear insulated from the brunt of the policy shift. The distinction reinforces that China is balancing between defending its trade interests and maintaining economic openness for global partners with onshore commitments.

Trade Frictions Escalate on Multiple Fronts

This move arrives amid broader EU-China tensions involving Chinese electric vehicles and Beijing’s perceived support for Moscow following the invasion of Ukraine. In parallel to the medical device retaliation, China has initiated an anti-dumping investigation targeting European liquors and imposed five-year tariffs on European brandy. Yet here too, the Chinese government provided carve-outs excluding producers that agreed to maintain minimum pricing. This pattern of limited but symbolically potent trade responses suggests a calibrated strategy rather than indiscriminate escalation.

Henry Gao, a legal scholar at Singapore Management University, described Beijing’s actions as measured, viewing them as proportional responses to EU actions in the same sector. The logic appears reciprocal rather than aggressively punitive, reflecting a correlational relationship between EU curbs and China’s actions. The effect is to apply political pressure ahead of the upcoming EU-China summit while signaling openness to future negotiation.

Upcoming Summit Shaped by Trade Tensions and Political Calculations

The timing of this trade retaliation adds uncertainty ahead of a highly anticipated summit between Chinese and EU leaders in Beijing. The summit, originally slated as a two-day event, may now be reduced to a single day, according to Bloomberg sources a move that signals growing diplomatic discomfort.

Chinese officials appear to be preparing for a less conciliatory posture than in past summits. According to Cui Hongjian, a former diplomat, China’s approach is defensive, showing readiness to cooperate if tensions ease but also determination to respond if provoked. This shift reflects a maturing diplomatic stance where economic pressure is employed selectively to gain leverage without undermining broader ties.

EV Dispute and Rare Earths Add Complexity to EU-China Relations

Beyond medical devices and liquors, the EU’s imposition of steep tariffs on Chinese electric vehicles continues to loom over the relationship. The EU argues that state subsidies distort market competition. China has responded by pressing for negotiations on setting minimum prices for EV exports. State-affiliated sources claim that technical discussions are nearing completion, but final political agreement remains pending.

At the same time, China’s increasing control over rare earth exports a sector vital to Europe’s green technology aspirations has drawn further concern from EU leaders. While not formally linked to retaliatory trade measures, the strategic tightening of rare earth supplies could indirectly influence trade negotiations and shape the EU’s willingness to compromise.

Structural Grievances Resurface as Strategic Considerations Deepen

The EU’s long-standing complaint is that its companies face unequal treatment in China, often being denied access to public contracts or burdened with regulatory obstacles. These structural concerns have persisted despite several rounds of dialogue. The current friction reflects deeper systemic misalignments between China’s state-influenced economic model and the EU’s calls for reciprocity and transparency.

China’s current strategy of offering carve-outs for localized production reveals a preference for incentivizing investment and integration over confrontation. Yet, this strategy also risks deepening the bifurcation of global trade rules and standards, as companies may feel compelled to establish operations inside China to avoid punitive barriers.

Delicate Balancing Act Ahead of Crucial Diplomatic Moment

As the China-EU summit approaches, both sides face a narrowing path to constructive engagement. China’s retaliatory actions, while limited in scope, demonstrate it is prepared to challenge what it views as protectionist behavior, yet still aims to retain economic ties with key European stakeholders. The pattern of partial exemptions, strategic retaliations, and ongoing negotiations reveals a complex interplay of diplomatic signaling, domestic economic safeguarding, and geopolitical positioning.

Whether the summit marks a step toward de-escalation or further divergence will likely depend on whether both sides can find common ground on the broader principles shaping their trade relationship not just sector-specific disputes.

Source: Bloomberg

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Economic

Surprise Upswing in German Industrial Production Defies Forecasts

Germany’s industrial sector delivered a stronger-than-expected performance in May, with output rising by 1.2% compared to the previous month, according to the federal statistics office. Analysts surveyed by Reuters had anticipated stagnation, with no monthly change. This positive deviation points to resilience in key segments of the German economy, particularly in automotive manufacturing and energy production.

The three-month rolling average, which smooths short-term volatility, further confirmed the trend. Industrial output from March through May increased by 1.4% compared to the previous three-month period, suggesting that the recent monthly gain was not an isolated spike but part of a broader rebound in productive activity.

April Output Revised Down but Does Not Diminish Positive Momentum

While the upward revision in May offers encouraging signs, the statistics office simultaneously revised April’s output drop downward from a provisional 1.4% decline to a more pronounced 1.6%. This adjustment underscores the sector’s recent volatility and the challenges it continues to face from fluctuating external demand and persistent structural pressures. However, May’s rebound more than offsets the revision, indicating a tentative shift toward recovery.

Despite the surge in output, recent industrial order data raises concerns about the durability of this recovery. New orders fell by 1.4% in May, interrupting the momentum built in previous months. The drop was primarily driven by weaker demand from eurozone trading partners, which introduces a potential lagging effect on future production levels.

The divergence between output and order volumes highlights a short-term mismatch: manufacturers may be fulfilling backlogs or ramping up supply in anticipation of delayed demand recovery. However, if the contraction in orders persists, it may eventually translate into lower production in the coming months. This dynamic points to a temporal correlation rather than a direct cause-effect chain, where current output gains reflect past demand, while new orders signal future challenges.

Germany’s May industrial production data suggests a tentative rebound, driven by automotive and energy activity. However, the simultaneous fall in new orders, especially from within the eurozone, tempers enthusiasm and calls for a more measured outlook. For now, the production upswing serves as a positive signal for Europe’s largest economy, but sustained recovery will depend on restoring broader demand conditions across the region.

Source: Bloomberg

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Cryptocurrency

Economic

Ethereum’s Transformation From Experiment to Financial Backbone

Over the past decade, Ethereum has evolved from a developer-focused blockchain experiment into a foundational technology increasingly integrated into institutional finance. At the recent Ethereum Community Conference (EthCC) held in Cannes, this transformation was made visibly and symbolically clear. The conference drew cryptocurrency founders, developers, and institutional players into a venue typically reserved for cinematic premieres now repurposed to spotlight the architecture of Ethereum-based finance.

The choice of Cannes as a venue was more than symbolic. According to Bettina Boon Falleur, the long-time organizer of EthCC, the location’s prestige, paired with the conference’s heightened technical depth, underscored Ethereum’s rising stature in the global financial ecosystem. The event served as a platform not for speculative discussions on price movements, but for strategic deliberations about how Ethereum can modernize back-end systems across financial institutions.

Institutional Embrace Marks a New Phase for Ethereum

One of the clearest signals of Ethereum’s growing institutional relevance came from Robinhood. The firm became the first publicly traded US brokerage to unveil tokenized stock offerings on-chain. This rollout, presented at a Belle Époque-style mansion overlooking the Riviera, outlined a new crypto strategy: allowing European users to trade tokenized US equities and ETFs via Arbitrum, a Layer 2 scaling solution built atop Ethereum.

Robinhood’s announcement triggered a sharp rally in its stock, pushing it past the $100 mark for the first time. The surge, exceeding 30% in a week, illustrates the market’s enthusiastic response to Ethereum-aligned innovation, especially as Robinhood was recently excluded from the S&P 500 rebalancing. Other blockchain-linked firms also experienced strong gains. BitMine Immersion Technologies saw a staggering 1,200% rise following its decision to use Ether as a reserve asset. Bit Digital, which pivoted to Ethereum staking, gained over 34%, while SharpLink Gaming jumped more than 28% after adding $20 million in Ether to its balance sheet.

The upward trend extended into ETF flows. Although Ether-tracking ETFs still lag behind their Bitcoin counterparts with only $11 billion in total assets compared to Bitcoin’s $138 billion they’ve seen renewed inflows, indicating rising institutional comfort with Ethereum. This reaffirms a correlational relationship between institutional product development and investor sentiment, as regulatory clarity and technological utility converge to drive adoption.

Functionality Over Frenzy: Institutions Bet on Infrastructure

Ethereum’s appeal among institutions is not driven by hype but by its proven utility. The blockchain’s integration into core transaction systems is accelerating, enabling faster, cheaper, and more flexible financial mechanisms. Paul Brody, EY’s global blockchain leader, emphasized this point, noting that Ethereum’s growing use in payment rails, savings platforms, and cross-border transfers reflects its real-world utility beyond speculative trading.

This shift from speculative enthusiasm to foundational integration is evident in projects like Deutsche Bank’s new platform on zkSync, another Ethereum-based network focused on tokenizing assets in a privacy-conscious and regulation-compliant manner. These developments demonstrate Ethereum’s ability to support regulatory-grade financial systems, positioning it not as a fringe experiment but as an institutional-grade ledger.

Race for Tokenized Equity: Coinbase, Kraken, and the Expanding Frontier

Other crypto-native firms are also racing to stake claims in this evolving landscape. Coinbase is seeking SEC approval to offer tokenized public equities, aiming to compete directly with traditional brokers. Kraken, meanwhile, plans to introduce 24/7 tokenized equity trading in select global markets. These initiatives reflect the growing belief that Ethereum can bridge the gap between traditional and digital finance, enabling round-the-clock access to legacy assets.

BlackRock’s BUIDL fund, launched on Ethereum, exemplifies this trend. The fund allows qualified investors to earn on-chain yield with real-time USDC redemptions, offering a glimpse of how future financial products might operate in tokenized environments.

Stablecoins and Ethereum’s Core Role in Liquidity Systems

Stablecoins remain central to Ethereum’s role in the financial system. Circle’s USDC, the second-largest stablecoin, continues to account for 65% of transaction volume on Ethereum. Ethereum, despite competition from faster blockchains like Solana, still commands nearly 50% of the stablecoin market. This reflects the blockchain’s long-standing reliability and the trust institutions place in its technical stability.

Vitalik Buterin, Ethereum’s co-founder, addressed this perception at EthCC. He noted that institutions often value Ethereum’s consistency and resilience over raw speed. While newer blockchains boast higher throughput and lower fees, Ethereum’s durability, security, and censorship resistance make it the preferred choice for high-stakes, regulated environments.

Trust Through Stability: What Institutions Value Most

The emphasis on long-term trust and impartial execution was echoed by Tomasz Stańczak, the newly appointed co-executive director of the Ethereum Foundation. Institutions, he explained, are drawn to Ethereum because it guarantees neutral execution, fair treatment of orders, and predictable functionality. These traits become especially important as tokenized assets and stablecoins move closer to mainstream adoption.

Recent legislative support, such as the passage of the GENIUS Act in the US Senate and Circle’s upcoming IPO, have further cemented Ethereum’s infrastructural role. These developments reflect an institutional preference for systems that align with regulatory expectations without compromising decentralization or privacy.

Ethereum’s Core Values as Competitive Advantage

The foundational values of Ethereum neutrality, security, and censorship resistance are becoming its most important features in the institutional race. As Falleur stated, the builders at EthCC are not chasing the next price spike. Instead, they are designing Ethereum to support a future where a billion users interact with financial systems powered by open infrastructure.

The question moving forward is whether Ethereum can scale while preserving its foundational ideals. As Buterin put it, success alone is not enough; Ethereum must also remain worthy of that success by fostering openness, freedom, and universal accessibility.

The week concluded not with another technical keynote but with a symbolic gesture: the rAAVE party at Villa Montana. Overlooking the glittering coastline of Cannes, Ethereum’s founding community mingled with rising DeFi innovators like Stani Kulechov and Sergey Nazarov. In that moment on balconies once reserved for movie stars Ethereum’s institutional future felt inevitable, marking its shift from decentralized experiment to financial pillar.

Source: CNBC

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Economic

Tariff Effects May Prolong Inflation Rather Than Cause a Temporary Surge

Federal Reserve Bank of Atlanta President Raphael Bostic has issued a public warning that recent shifts in US trade policy, particularly the imposition of tariffs, could result in sustained inflation rather than a short-term price spike. According to Bostic, these developments are likely to maintain elevated price levels for a year or more, especially as companies factor in cost adjustments from policy changes and volatile global conditions.

Despite mounting pressure from former President Donald Trump for the Federal Reserve to lower interest rates, Bostic has expressed firm support for Chairman Jerome Powell’s wait-and-see approach. Emphasizing caution, Bostic stated that monetary policy should not be adjusted hastily and that the full effects of tariff-related price changes must first be observed before altering the current policy stance. He reiterated that this period does not justify substantial changes to interest rate settings.

Inflation Figures Remain Above Target but Do Not Yet Fully Capture Tariff Impact

Inflation data from March through May has remained above the Fed’s 2 percent target, but Bostic believes the current numbers understate the long-term effects of trade policies. He explained that many firms are postponing price increases until tariffs are finalized, suggesting that the full inflationary impact may only become visible in the coming months. This cautious interpretation reflects a lag in how cost pressures pass through to consumer prices.

Although Bostic does not hold a voting seat on the Federal Open Market Committee (FOMC) this year, his insights add to the internal Fed discourse, especially as markets continue to speculate about future rate cuts. His comments arrive ahead of the next FOMC meeting scheduled for July 29-30 and just days before a key tariff suspension agreement is set to expire on July 9. The looming expiration of the 90-day delay on retaliatory tariffs injects additional uncertainty into the Fed’s inflation outlook.

Strong Labor Market Data Undermines Case for Immediate Monetary Easing

Hours before Bostic’s statement, the June nonfarm payroll report revealed a significant increase in job creation alongside a declining unemployment rate, which exceeded economists’ expectations. This robust labor market performance further diminishes the likelihood of an imminent rate cut, reinforcing the narrative that the US economy does not currently warrant monetary stimulus despite persistent inflation pressures.

The connection between tariffs and inflation, as emphasized by Bostic, suggests a direct causal relationship. Trade restrictions increase the cost of imported goods and inputs, which then elevate production costs for domestic firms. However, the delay in observable price increases indicates a lag effect, where the initial policy does not result in immediate consumer-level inflation but gradually builds as firms adjust pricing strategies. The timeline and magnitude of this pass-through are critical for policymakers as they evaluate the appropriate timing for any monetary policy adjustments.

Bostic’s remarks reflect the Federal Reserve’s broader effort to remain data-driven and independent from political pressure. While the economy shows resilience in job growth, underlying inflation risks, especially those tied to trade policy, require a longer observation window. The Fed’s strategic patience, as supported by Bostic, underscores the importance of understanding delayed cost transmission mechanisms and their influence on price stability.

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