100% Tariff on Russian Oil Buyers:
The story of the 100% tariff came out. So first, what was between 3.5% and 3.75% became 3.75% to 4%. This is the first time since July 2023 that rates have changed. Now, when it comes to the statement, the last line was very important:
The committee will deliver price stability. Central banks usually talk in circles, but here a direct promise was made.So, Kevin said that, look, inflation is very high and has been high for a very long time. Because of this, he discussed three reasons. First, both the economy and jobs are strong. Second, inflation is still above the 2% target. Third, there are tensions in the Middle East. Looking at all of this, we had to raise the interest rate.
Trump Tariff Threat:
Today, we will understand everything one by one so that you can comprehend the US market, Indian market, Gold, and Crypto altogether. First of all, clear up one big misconception. Many people think, ‘If America raises its rates, what does it matter to us?’ Look at what the Fed is: it is the main tap for the world’s money. When the Fed raises rates, the dollar gets stronger. This means borrowing money becomes more expensive. Most of the world’s major money transactions happen in dollars. Even today, if we want to do anything, it has to be in dollars—every hour revolves around the dollar. This is where the story shifts. Now, what happened yesterday is that the Federal Reserve raised interest rates for the first time in 3 years.
India-US Trade Impact:
In the new projections, the inflation forecast stands at 3.7%, and the unemployment rate has been reduced from 4.3% to 4.1%. This means the economy is strong. Inflation is being stubborn. There is scope for another rate hike in the upcoming Fed meetings in October 2026 or December 2026. Now, this has sparked Trump’s anger. A few hours after the decision, Trump said that the rate in America should be 1% or even less. I mean, tell me, how is that even possible? To this, Powell’s response was that the Fed will stay on its own path, stick to its line, and the trade policy people should stay on theirs. Both shouldn’t try to cross each other. But the thing is, Trump’s anger doesn’t stop here.
Nifty & Sensex:
They proposed for Canada to become the EU’s first associate member. Now, you can understand an associate member like someone who isn’t a full member of a club, but is a special guest who can enjoy all of the club’s facilities. Trump called this proposal laughable. He warned that if he perceived this as a hostile move, he would slap massive tariffs on Europe. Now, he will just play the tariff game and simultaneously halt business with Europe altogether. Now, if we talk about Canada, Trump has already imposed a 50% tariff on it. In this game of tariffs, Trump is just seven weeks away from his midterm elections, which is hanging over him like a sword of Damocles, and it remains to be seen how he handles it. Now, the next angle to this is that yesterday, the US House of Representatives passed a bill. The name is the Lindsey Graham Sanctioning Russia and Iran Act of 2026. The vote stood at 262 to 159, and the Senate has already passed it