Connect with us

Published

on

The US central bank has raised expectations that interest rate cuts are around the corner, but also signalled it wants more evidence that easing inflation is sustainable.

The Federal Reserve kept its core interest rate range steady between 5.25-5.5% following the first meeting of its Federal Open Market Committee in 2024.

Its statement to accompany the decision showed it had dropped a longstanding reference to possible further hikes
in borrowing costs.

It said: “The committee judges that the risks to achieving its employment and inflation goals are moving into better balance”, signalling an improvement in conditions towards a rate cut.

Money latest: Most hated taxes revealed – plus Amazon Prime change imminent

But crucially it added: “The committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2% – its target rate.”

At a news conference, Fed chair Jay Powell told reporters: “We do have confidence but we want to get greater
confidence” that cooling inflation data is sending “a true signal”.

More from Business

Federal Reserve Chairman Jerome Powell Pic: AP
Image:
Federal Reserve Chairman Jerome Powell remains cautious on the prospects for rate cuts in the short term. Pic: AP

The remarks saw a shift in financial market expectations for the first rate cut.

The majority of opinion moved to May from March.

The Fed’s tightening cycle began in March 2022 when price pressures were ramping up in the wake of Russia’s invasion of Ukraine.

Inflation peaked at a 40-year high several months later and the headline rate has eased at a faster pace than in Europe since.

US stocks fell following the release of the Fed’s statement while the dollar rose against many currencies though not versus the pound.

That could be a consequence of expectations that the Bank of England will take a harder line on the prospect of rate cuts.

Please use Chrome browser for a more accessible video player

December: ‘Too early to speculate on interest rate cut’

UK rate-setters are widely tipped to leave the Bank rate at 5.25% – the level it has sat at since August last year – on Thursday.

While inflation has also eased sharply from the peak above 11% witnessed in 2022, it remains more stubborn than across the Atlantic.

The pace of price increases in the economy remains double the Bank of England’s 2% target rate, above 4%.

It was for that reason that policymakers including governor Andrew Bailey have stuck to a script since December that it is too early to think about rate cuts.

Financial markets currently see four reductions in 2024, beginning in May.

The Bank’s latest thinking will be revealed in the minutes of the Monetary Policy Committee (MPC) meeting and the accompanying Monetary Policy Report.

Mr Bailey hosts a news conference shortly after the information is released.

The first clue towards any shift in the ‘hold’ stance will come from the voting among the nine members of the MPC.

Three backed a rate increase in December while the other six won the day by backing no change.

Continue Reading

US

The anniversary of George Floyd’s murder is a reminder of America’s racial divides

Published

on

By

The anniversary of George Floyd's murder is a reminder of America's racial divides

In Minneapolis, the spot where George Floyd was murdered has been turned into a mural.

His face is depicted in street art on a pavement covered in flowers, rosaries, and other trinkets left by people who have come to pay their respects in the last five years.

His final moments, struggling for breath with white police officer Derek Chauvin’s knee on his neck, were captured in a viral video that provoked anger, upset, and outrage.

Derek Chauvin kneeling on George Floyd's neck
Image:
Derek Chauvin kneeling on George Floyd’s neck

In Minneapolis and other parts of America, there were protests that at points boiled over into unrest.

The events to mark the fifth anniversary of his death took on a very different tone – one of celebration and joy.

Behind a wooden statue of a clenched fist on one end of a junction now renamed George Perry Floyd Square, people gathered in the morning.

There was a moment of prayer before a brass band began to play and the group marched, while singing and chanting.

George Perry Floyd Square, a makeshift memorial area
Image:
George Perry Floyd Square, a makeshift memorial area

‘It made us want to fight harder’

Among those gathered in front of a makeshift stage built in the square were two of Floyd’s family members – his cousin Paris and aunt Mahalia.

To them, the man whose death sparked a racial reckoning in America and further afield, was simply “Perry,” a larger-than-life figure whose presence is missed at family gatherings.

Speaking to me while the speakers behind them thumped and people danced, they didn’t just reflect with sadness though.

There was also pride at a legacy they felt has led to change.

“It made us want to fight harder,” said Mahalia, “and it’s a feeling you cannot explain. When the whole world just stood up.”

George Floyd's aunt Mahalia and cousin Paris
Image:
George Floyd’s aunt Mahalia and cousin Paris

Referring to Chauvin’s eventual murder charge, Paris added: “I think that from here on out, at least officers know that you’re not going to slide through the cracks. Our voices are heard more.”

The tapestry of items outside the Cup Foods convenience store, now renamed Unity Foods, is not the only makeshift memorial in the area.

A short walk away is the “Say Their Names” cemetery, an art installation honouring black people killed by the police.

Meeting me there later in the day, activist Nikema Levy says the installation and George Floyd Square are called “sacred spaces” in the community.

As someone who took to the streets at the time of Floyd’s death and a community organiser for years before that, she’s constantly stopped by people who want to speak to her.

Activist Nikema Levy speaking to Sky News
Image:
Activist Nikema Levy speaking to Sky News

‘White supremacy on steroids’

Once we do manage to speak, Levy reminds me of a wider political picture. One that goes beyond Minneapolis and is a fraught one.

In the week of the anniversary, the US Department of Justice rolled back investigations into some of the largest police forces in the country, including in Minneapolis – a move she calls “diabolical.”

“That type of cruelty is what we have seen since Donald Trump took office on January 20th of this year,” she continued.

“From my perspective, that is white supremacy on steroids. And it should come as no surprise that he would take these types of steps, because these are the things that he talked about on the campaign trail.”

Read more from Sky News:
US-EU trade war fears reignite
Arsenal secure historic Champions League crown
Scientists are on the hunt for dolphin poo

Please use Chrome browser for a more accessible video player

Has US changed five years after George Floyd’s death?

‘True healing has never taken place’

Trump has argued his policing reforms will help make America’s communities safer.

Even on a day of optimism, with a community coming together, Levy’s words in front of headstones bearing the names of black people who have died at the hands of the police are a reminder of how deep the racial divides in America still are – a sentiment she leaves me with.

“From the days of slavery and Jim Crow in this country, we’ve just had the perception of healing, but true healing has never taken place,” she says.

“So the aftermath of George Floyd is yet another example of what we already know.”

Continue Reading

US

US-EU trade war fears reignite as Europe strikes back at Trump’s threat

Published

on

By

US-EU trade war fears reignite as Europe strikes back at Trump's threat

Fears of a US-EU trade war have been reignited after Europe refused to back down in the face of fresh threats from Donald Trump.

The word tariff has dominated much of the US president’s second term, and he has repeatedly and freely threatened countries with them.

Money blog: Trump sends message to UK on energy bills

This included the so-called “liberation day” last month, where he unleashed tariffs on many of his trade partners.

On Friday, after a period of relative calm which has included striking a deal with the UK, he threatened to impose a 50% tariff on the EU after claiming trade talks with Brussels were “going nowhere”.

The US president has repeatedly taken issue with the EU, going as far as to claim it was created to rip the US off.

However, in the face of the latest hostile rhetoric from Mr Trump’s social media account, the European Commission – which oversees trade for the 27-country bloc – has refused to back down.

EU trade chief Maros Sefcovic said: “EU-US trade is unmatched and must be guided by mutual respect, not threats.

“We stand ready to defend our interests.”

President Donald Trump speaks to reporters after signing executive orders regarding nuclear energy in the Oval Office of the White House, Friday, May 23, 2025, in Washington, as Commerce Secretary Howard Lutnick and Defense Secretary Pete Hegseth listen. (AP Photo/Evan Vucci)
Image:
Donald Trump speaks to reporters in the Oval Office on Friday

Fellow EU leaders and ministers have also held the line after Mr Trump’s comments.

Polish deputy economy minister Michal Baranowski said the tariffs appeared to be a negotiating ploy, with Dutch deputy prime minister Dick Schoof said tariffs “can go up and down”.

French trade minister Laurent Saint-Martin said the latest threats did nothing to help trade talks.

He stressed “de-escalation” was one of the EU’s main aims but warned: “We are ready to respond.”

Mr Sefcovic spoke with US trade representative Jamieson Greer and commerce secretary Howard Lutnick after Mr Trump’s comments.

Mr Trump has previously backed down on a tit-for-tat trade war with China, which saw tariffs soar above 100%.

Read more:
Trump accepts $400m plane from Qatar
Judge blocks Trump’s Harvard foreign student ban

Please use Chrome browser for a more accessible video player

US and China end trade war

Sticking points

Talks between the US and EU have stumbled.

In the past week, Washington sent a list of demands to Brussels – including adopting US food safety standards and removing national digital services taxes, people familiar with the talks told Reuters news agency.

In response, the EU reportedly offered a mutually beneficial deal that could include the bloc potentially buying more liquefied natural gas and soybeans from the US, as well as cooperation on issues such as steel overcapacity, which both sides blame on China.

Stocks tumble as Trump grumbles

Major stock indices tumbled after Mr Trump’s comments, which came as he also threatened to slap US tech giant Apple with a 25% tariff.

The president is adamant that he wants the company’s iPhones to be built in America.

The vast majority of its phones are made in China, and the company has also shifted some production to India.

Shares of Apple ended 3% lower and the dollar sank 1% versus the Japanese yen and the euro rose 0.8% against the dollar.

Continue Reading

US

Trump accused of ‘pouring salt on the wounds’ five years after murder that shook America

Published

on

By

Trump accused of 'pouring salt on the wounds' five years after murder that shook America

In the dozens of framed images and newspaper clippings covering the walls of his office in downtown New York City, Al Sharpton is pictured alongside presidents and leading protests.

He has spent decades campaigning and is perhaps the most famous civil rights activist in the US today.

Many of those clippings on the wall relate to one moment in May 2020 – the murder of George Floyd.

George Floyd was killed while under arrest in Minneapolis in May
Image:
George Floyd was killed while under arrest in Minneapolis in May 2020

Speaking to Sky News ahead of the five-year anniversary of that moment, Mr Sharpton remembered the combination of “humiliation and deep anger” he felt seeing the footage of Mr Floyd’s death that swept the world.

“The more I watched, the more angry I felt,” he said.

Mr Floyd was murdered in Minneapolis by Derek Chauvin, a 44-year-old white police officer.

Mr Floyd had been arrested after a store clerk reported he had made a purchase using counterfeit money.

Chauvin knelt on Mr Floyd’s neck for over nine minutes, while he was handcuffed and lying face down in the street.

Chauvin pressed his knee on Mr Floyd's neck for more than nine minutes, as the victim repeatedly said "I can't breathe" Pic: AP
Image:
Chauvin pressed his knee on Mr Floyd’s neck for more than nine minutes, as the victim repeatedly said ‘I can’t breathe’. Pic: AP

‘A seismic moment’

For Mr Sharpton, who has marched with countless other families, this felt different because it was “graphic and unnecessary”.

“What kind of person would hear somebody begging for their life and ignore them?” he said.

“I had no idea this would become a seismic moment,” he continued.

“I think people would accuse civil rights leaders, activists like me of being opportunistic, but we don’t know if one call from the next one is going to be big, all we know is we have to answer to the call.”

Please use Chrome browser for a more accessible video player

Has US changed five years after George Floyd’s death?

Trump ‘pouring salt on the wounds’

Mr Floyd’s death took place during Donald Trump’s first term in the White House.

During Trump’s second term, his administration has moved to repeal federal oversight plans for the Minneapolis Police Department – a move originally supported by Joe Biden’s administration.

Mr Sharpton believes Mr Trump and the Department of Justice have purposely timed this for the 5th Anniversary of Mr Floyd’s Death.

“It’s pouring salt on the wounds of those that were killed, and those that fought,” he said.

“I think Donald Trump and his administration is actively trying to reverse and revoke changes and progress made with policing based on the movement we created after George Floyd’s death, worldwide.”

Read more from Sky News:
‘Grandpa robbers’ guilty over Kim Kardashian heist
Train station stabbing in Germany

Protesters took to the street the day before jury selection, due to take three weeks, started
Image:
The murder of George Floyd sparked Black Lives Matter protests around the world

Mr Sharpton still supports George Floyd’s family and will be with them this weekend in Houston, Texas, where many of them will mark the anniversary.

He said the legacy of Mr Floyd’s death is still being written.

Evoking the civil rights movement of the 1960s he said: “The challenge is we must turn those moments into permanent movements, it took nine years from 1955 to 1964 for Dr [Martin Luther] King in that movement to get a Civil Rights Act after Rosa Parks sat in the front of a bus in Montgomery.

“We’re five years out of George Floyd, we’ve got to change the laws.

“We can do it in under nine years, but we can’t do it if we take our eye off the prize.”

Continue Reading

Trending