Bessent Says US Could Announce Some Trade Deals as Soon as 'This Week'

Source: kitco

Fed expected to hold rates steady despite slowing growth

​Inflation remains the primary concern for policymakers

​Fed officials pushing back against rate cut expectations

Market implications of a hawkish Fed stance

Economic data influencing Fed decision-making

​Long-term inflation expectations remain a key focus

​Potential catalysts for a policy shift later in 2025

Source : ig

Source: Bloomberg

Their meeting started with smiles and a handshake despite Trump's desire to make Canada the 51st U.S. state, a prospect that has chilled bilateral relations. The subject quickly came up as they took questions from reporters.

"We're not going to be discussing that unless somebody wants to discuss it," Trump said. "It would really be a wonderful marriage."

Carney put down the idea firmly.

"It's not for sale, it won't be for sale - ever," he told Trump in the Oval Office.

"Never say never, never say never," Trump said.

Trump, whose tariff policy has rattled world markets, said he and Carney would discuss "tough points," an allusion to the president's belief that the United States can do without Canadian products.

"Regardless of anything, we're going to be friends with Canada," he said.

Carney's Liberal Party won the April 28 election on promises to tackle Trump and create a new bilateral economic and security relationship with the United States.

Shortly before Carney arrived, Trump posted a message on social media.

"I very much want to work with him, but cannot understand one simple TRUTH — Why is America subsidizing Canada by $200 Billion Dollars a year, in addition to giving them FREE Military Protection, and many other things? We don’t need their Cars, we don’t need their Energy, we don’t need their Lumber, we don’t need ANYTHING they have, other than their friendship, which hopefully we will always maintain. They, on the other hand, need EVERYTHING from us!"

Trump appeared to be referring to the trade deficit the U.S. has with Canada due mostly to American imports of Canadian oil, although Canada's merchandise trade surplus was C$102.3 billion ($74.25 billion) in 2024.

Carney, a 60-year-old ex-central banker with no previous political experience, was elected Liberal leader in March to replace Justin Trudeau, who had a poor relationship with Trump.

Canada is the U.S.' second-largest individual trading partner after Mexico, and the largest export market for U.S. goods. More than $760 billion in goods flowed between the two countries last year.

Ahead of the meeting, the U.S. Commerce Department reported on Tuesday Canada's goods trade surplus with the U.S. narrowed to a five-month low in March, the month when Trump's hefty tariffs on imported steel and aluminum took effect. Canadian exports to the U.S. plunged by $3.7 billion, the second-largest drop on record.

Canadian data showed the drop in U.S. exports was almost compensated by an increase to the rest of the world, as Canadian companies sought new markets.

Shows trade relationship with Canada

Trump in March imposed a 25% tariff on all steel and aluminum imports and then slapped another 25% tariff on cars and parts that did not comply with a North American free trade agreement.

On Sunday, Trump said he would put a 100% tariff on all movies produced outside the U.S., without giving details, in a potential blow to Canada's film industry.

With additional reporting by Andrea Shalal and Doina Chiacu in Washington; Editing by Nia Williams and Rod Nickel

Source: Reuters

DEX traders load up on puts

Focus on the June rate cut talk

Source: coindesk

The US Energy Information Administration (EIA) no longer expects to publish one of its major energy reports this year after losing some of its staff through President Donald Trump's efforts to downsize the federal workforce.

The EIA does not plan to publish its International Energy Outlook (IEA) — which models long-term global trends in energy supply and demand — this year because of a loss of staff responsible for producing the report, according to an internal email initially reported by the news outlet ProPublica. The EIA confirmed the authenticity of the email.

"At this point, you can assume that we will not be releasing the IEO this year," the EIA's Office of Energy Analysis assistant administrator Angelina LaRose wrote in the 16 April email. "This was a difficult decision based on the loss of key resources."

Oil and gas producers, traders, utility companies, federal regulators and foreign governments have come to rely on the data and models from the EIA, an independent agency within the US Department of Energy. The 2025 version of the IEO might still be published early next year, the EIA said.

The agency for now is focusing on trying to "preserve as much institutional knowledge as possible" with an "all hands-on deck" effort under which remaining staff will document models and procedures on long-term modeling, LaRose wrote in the email.

Trump and his administration have worked to cut the size of the government's workforce through voluntary buyouts and a process known as a reduction in force. The EIA has yet to say how many personnel it has lost, but about a third of the agency's 350 staffers have accepted voluntary buyouts, according to a person familiar with the situation. The White House last week proposed an 18pc budget cut for the non-nuclear portions of the Department of Energy, but has yet to say if it is seeking to cut spending at the EIA.

Last month, the EIA released its premier report, the Annual Energy Outlook, but omitted its traditional in-depth analysis. A technical issue on 1 May delayed the release of a key natural gas storage report by more than three hours, the EIA said.

Source: Argus Media