Saudi Arabia, Pakistan sign mutual defence pact
Saudi Arabia and Pakistan have formalised a mutual defence agreement, reinforcing a decades-long security partnership, Pakistani state television repo...
The U.S. Federal Reserve is widely expected to hold interest rates steady at its policy meeting on Wednesday, as signs of easing inflation and continued job growth clash with increasing pressure from President Donald Trump to slash rates amid the first economic contraction in three years.
Trump has intensified his public attacks on Fed Chair Jerome Powell, blaming him for failing to act swiftly as economic risks mount. The president’s criticism has grown louder following recent data showing a 0.3% year-on-year GDP contraction in the first quarter and signs of weakening labor market momentum.
Despite mounting political pressure, analysts expect the Fed to keep the federal funds rate unchanged at 4.25%–4.5%, emphasizing a cautious approach as it weighs mixed economic indicators.
Inflation data released by the U.S. Labor Department showed the Consumer Price Index (CPI) declined 0.1% in March, the first monthly drop since May 2020, bringing annual inflation down to 2.4%, the lowest since September 2024. The Producer Price Index (PPI) also fell by 0.4% month-on-month in March, with a 12-month increase of 2.7%. The Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, remained flat monthly and eased to 2.6% annually, down from 3% in February.
While inflation cools, the economy showed signs of slowing. The trade deficit reached a record $162 billion in March, driven by a surge in imports that weighed on domestic output. Labor data painted a mixed picture. Non-farm payrolls rose by 177,000 in April, slightly above expectations, but private-sector hiring disappointed, rising just 62,000. The unemployment rate held steady at 4.2%, while initial jobless claims rose to 241,000, the highest in nine weeks.
In response to these developments, Trump ramped up his criticism of Powell. On April 7, he wrote on social media: “Now is a PERFECT time to cut rates,” accusing Powell of being “always late.” On April 17, he added: “Jerome Powell of the Fed, who is always TOO LATE AND WRONG… issued a report which was another, and typical, complete ‘mess!’” Days later, he claimed Powell’s actions could trigger a deeper slowdown.
Although markets were rattled by the escalating tension, Trump softened his tone on April 23, denying any plans to remove Powell despite calling him a “major loser” earlier. Nevertheless, he renewed calls for rate cuts following the release of April’s labor data.
The Federal Reserve, meanwhile, has signaled that while inflation is moving toward its 2% target, the labor market’s underlying strength and geopolitical uncertainties argue for caution. The central bank’s statement on Wednesday is expected to acknowledge recent progress on inflation but stop short of signaling any imminent rate cuts.
AnewZ has learned that India has once again blocked Azerbaijan’s application for full membership in the Shanghai Cooperation Organisation, while Pakistan’s recent decision to consider diplomatic relations with Armenia has been coordinated with Baku as part of Azerbaijan’s peace agenda.
A day of mourning has been declared in Portugal to pay respect to victims who lost their lives in the Lisbon Funicular crash which happened on Wednesday evening.
A Polish Air Force pilot was killed on Thursday when an F-16 fighter jet crashed during a training flight ahead of the 2025 Radom International Air Show.
At least eight people have died and more than 90 others were injured following a catastrophic gas tanker explosion on a major highway in Mexico City’s Iztapalapa district on Wednesday, authorities confirmed.
Chinese President Xi Jinping and U.S. President Donald Trump are expected to attend the Asia-Pacific Economic Cooperation (APEC) summit next month in South Korea.
Saudi Arabia and Pakistan have formalised a mutual defence agreement, reinforcing a decades-long security partnership, Pakistani state television reported on Wednesday.
Britain’s King Charles and U.S. President Donald Trump celebrated the enduring “special relationship” between their countries during a state banquet at Windsor Castle on Wednesday.
Five police officers have been shot in the U.S. state of Pennsylvania, with three reported to be in grave condition and another in critical care.
Syria’s President Ahmed al-Sharaa said ongoing negotiations with Israel over a security pact could produce results “in the coming days.”
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment