🪙 Metals Market Update
Gold continues its stellar performance, now trading above $3,300/oz—up an impressive 26% since January. Meanwhile, silver has quietly gained around 15% during the same period. This metals surge comes as major stock indexes struggle, with the S&P 500 down 8% and the Nasdaq tumbling 11% year-to-date.
🤺 US Challenges China's Mineral Dominance with New Investigation
President Trump has ordered an investigation into potential tariffs on critical mineral imports, citing national security concerns. The probe will examine supply chains for essential materials including cobalt, nickel, rare earths, and uranium. This action comes as the US remains heavily dependent on foreign sources—particularly China—for processed minerals vital to the economy. China recently underscored America's vulnerability in this sector by restricting rare earth exports in retaliation to earlier US tariffs.
📉 Fed's Waller Signals Potential Rate Cuts
Speaking to the CFA Society in St. Louis, Federal Reserve Governor Chris Waller suggested substantial interest rate cuts may be necessary if President Trump's tariffs remain in place long-term. Waller, considered a potential successor to Jerome Powell as Fed Chair in 2026, indicated the Fed might "look through" tariff-induced inflation up to 5% as temporary, rather than responding with rate hikes. He acknowledged this "transitory inflation" approach would likely face criticism from Wall Street, especially given the Fed's misjudgment during the 2021-22 post-COVID inflation surge.
📈 Trump Administration Ramps Up China Tariffs to 254%
President Trump clarified that Chinese-made smartphones and other electronics will not be exempt from tariffs, earlier this week. But the fued is far from over. According to a new White House press release, China now faces up to a 245% tariff on United States imports as a result of its retaliatory actions.