Morning Economic Report 5-29-25

Economy update

Overnight developments raised a dim, but probably misplaced, hopes that there truce might be achieved in the ongoing trade war. A US federal court blocked the US President’s ‘Liberation Day’ tariffs, which increased investors’ risk appetite. The government appealed and the case could end up at the Supreme Court. Last night’s Fed minutes showed concerns about rising inflation, consequently a rate cut in July is now increasingly unlikely. Equities are advancing and the dollar is also edging higher whilst bond prices are trending lower.