Bloomberg Daybreak: US Edition President Trump Pushes Powell on Rates; Bessent Says China Talks Stalled
May 30, 2025
A federal appeals court delivers a surprise twist by temporarily blocking a ruling that could have derailed President Trump's tariff agenda. Trump presses Fed Chair Jay Powell to cut interest rates, suggesting it would level the playing field with China. Meanwhile, Treasury Secretary Scott Bessent warns that U.S.-China trade talks have hit a standstill, emphasizing the need for direct involvement from both leaders to move forward. Market traders are bracing for potential turmoil amid these developments.
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Key Inflation Gauge Monitored
- Key inflation measure, PCE price index excluding food and energy, is being closely watched by investors for economic insight.
- The Fed's preferred gauge influences expectations for future monetary policy decisions.
Tariffs Cap Equity Sentiment
- Investors anticipate sustained volatility and a bias for higher government bond yields due to tariff uncertainties.
- This outlook acts as a ceiling on equity market sentiment.
Tariff Legal Battle Impacts Markets
- The temporary court victory allows Trump to delay tariff rollbacks and maintain negotiation leverage.
- However, the uncertainty in legal rulings adds volatility to markets and investor caution.