After a new attack by President Donald Trump on central bank boss Jerome Powell, the golden prize is getting up. The stock prices of some American companies fall, anyway the crash is dramatic, especially at Tesla. An expert even sees “alarm stall red” with the Elon Musk car company.
Trump had once again called for an interest rate reduction and Powell described Monday as “Mr. Too Late” and a “Big Loose”. For the time being, Powell does not want to reduce risks after Trump’s customs circuit. At the same time, economists warn that the result of the trade conflict can be a slower economic growth or even a recession in the United States. In the meantime, lower interest rates can speed up inflation.
The gold price has increased by almost 12% since the end of March
On Tuesday the price for a Troy Oune (about 31.1 grams) rose for the first time in the history of $ 3500 ($ 3081) in history. That is an increase of more than 2 percent compared to the previous evening. The precious metal is often controlled as a safe haven in times of crisis. The gold price was raised by almost 3 percent on Monday. The gold prize in April had promoted his meeting, which had previously been persistent for months because of the aggressive American customs policy and the fear of a global recession. Since the end of March, the gold price has risen by almost 12 percent.
Trump claimed that there is currently almost no inflation and could inhibit the absence of interest reduction. Experts, however, fear that an inflation boost such as companies must pass on the higher costs due to Trump’s rates to consumers. In the meantime, with “Mr. Too Late”, Trump referred to criticism that Powell had been waiting too long with the interest rate increases of the price increase of Corona Pandemic.
Trump denies inflation
Trump claimed that there is currently almost no inflation and could inhibit the absence of interest reduction. Experts, however, fear that an inflation boost such as companies must pass on the higher costs due to Trump’s rates to consumers. In the meantime, with “Mr. Too Late”, Trump referred to criticism that Powell had been waiting too long with the interest rate increases of the price increase of Corona Pandemic.
Already on Friday, Trump’s business advisor Kevin Hassett said that Proxim Powell could reject. The concern that the president could try to push the central bank boss out of the office was the withdrawal of investors from the US stock market on Monday.
Expert advises Musk withdrawal from politics
Tesla shares lost 5.8 percent. The manufacturer of electric cars presented every three -month figures for the first quarter on Tuesday, which fell by 13 percent. From analysts Dan Ives von Wedbush Securities, who for a long time expressed himself very optimistic about the future of Tesla, warning words came during the weekend. Tesla stands for a “alarm stall red” moment. Company boss Elon Musk must end his work in the Trump government and concentrate on Tesla, Ives demanded.
Nvidia loses, Netflix surprises positively
Papers from the chip manufacturer Nvidia Slide with another 4.5 percent. Already on Thursday, the titles of the AI-Overblozer suffered from the news that the US government also forbade the sale of the chip manufacturer of the closed chips by name H20 to China. Netflix shares, on the other hand, won 1.5 percent. The streaming provider had pleasantly surprised investors on Thursday after the end of the A -fair with the results of the past quarter and the expectations of the current annual quarter.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
