Stocks react positively to Fed actions, President Trump criticizes Fed, Eli Lilly launches diabetes drug.

From Yahoo Finance: 2025-03-20 07:03:00

U.S. stocks reacted positively to the Federal Reserve’s actions this week, with Chair Jerome Powell downplaying inflation concerns from trade tariffs and a slowdown in balance sheet reduction. President Trump criticized the Fed’s decision not to cut rates and focused on boosting domestic energy production. Meanwhile, Eli Lilly launched a diabetes drug in India.

European Union leaders plan to enhance competitiveness and military power in response to economic challenges, including U.S. tariffs. Central banks worldwide are closely watched following recent meetings, with Wall Street futures rising after the Fed’s statement. The dollar strengthened despite falling yields, possibly in anticipation of upcoming tariff increases.

President Trump’s call for rate cuts highlights concerns over the Fed’s independence. A potential delay in retirement due to stock market volatility may impact the U.S. jobless rate. Many retirees lack sufficient savings, raising uncertainty about their future. The labor market could see changes as retirees stay in the workforce longer, affecting unemployment calculations.

The impact of stock market fluctuations on retirement decisions and workforce participation is a key concern. Uncertainty in the economy is reflected in business and household surveys, with anxiety affecting older workers. A longer-term market decline could have significant implications for the ageing population. Central banks face challenges in navigating policy shifts post-pandemic.

The Swiss National Bank’s rate cut raises questions about a return to zero interest rate policies. Events to watch include the Bank of England policy decision and U.S. economic data releases. Market participants await speeches from central bank policymakers and corporate earnings reports. The evolving economic landscape poses challenges for policymakers and investors alike.



Read more at Yahoo Finance: Fed soothes as Trump seethes