Financial Market Newsletter

With more tariffs scheduled to be announced on April 2, market volatility may not yet be over.

The USD Index rose by 0,33% yesterday, marking its second straight day of recovery, after the Federal Reserve indicated that it is in no rush to cut rates further this year, given the demand to closely monitor economic uncertainties linked to President Donald Trump’s evolving tariff policies.

The U.S Federal Reserve (FED) announced its decision to keep the benchmark interest rate unchanged at 4,25% - 4,5% following its March policy meeting, as it evaluates a series of policy shifts - including trade, immigration, fiscal spending, and tariffs - under President Donald Trump’s administration.

Given the current economic landscape, markets are now pricing in three 25-basis-point rate cuts at the FED’s June, July, and October policy meetings.

The Organization for Economic Cooperation and Development (OECD) stated that higher U.S import tariffs will slow global economic growth and push inflation higher worldwide.

U.S retail sales in January declined by 0,9%, marking the largest monthly drop since 2023, while February’s data is set to be released later tonight.

The U.S Producer Price Index (PPI) for February, excluding food and energy, recorded its first decline since July 2024.

The US's core CPI, which excludes food and energy prices, increased by 3,1%, marking the lowest level since 2021.

Forecasts suggest that CPI may remain elevated last month after a sharp increase in January, indicating that the Federal Reserve still faces significant challenges in its battle to control inflation.