Jerome Powell On US Inflation, Vodafone Plans 5G Launch, Finance Minister's Budget Debate | Rise With Profit
NDTV Profit Podcasts: From Fed Chair Jerome Powell's comments on US inflation to Vodafone's plans to launch 5G services, here’s everything you need to know at the start of your day.
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The US Federal Reserve does not need to rush to adjust interest rates, according to Chair Jerome Powell. He said that officials will be patient before lowering borrowing costs further.
With the policy stance now significantly less restrictive than it had been and the economy remaining strong, the Fed does not need to be in a hurry, he said. He said this during his testimony before the Senate Banking Committee overnight.
Reducing policy restraint too quickly or too much could hinder progress on inflation. But at the same time, reducing too slowly or too little could weaken economic activity and employment, Powell said.
The thing is, President Donald Trump’s action on tariffs could well be inflationary too. Ultimately higher tariffs will impact cost of imports and while some of the supply will be taken up by domestic producers of aluminium and steel, there could well be an increase in the prices. Speaking of those tariffs, Mexico, Canada and the European Union on Tuesday condemned US President Donald Trump's decision to impose tariffs on all steel and aluminium imports next month.
A Reuters report also said that businesses around the United States have warned of fallout from the tariffs, with many manufacturing-heavy companies finding it difficult to plan next steps or determine if Trump will follow through.
US equities ended mixed overnight. The Dow gained about 0.3% and the tech-heavy Nasdaq lost the same value. The S&P 500 ended flat. Meanwhile, in the Asia Pacific region, the three early risers were rangebound last I checked, with two of the three trading with a positive bias.
In news back home, Union Finance Minister Nirmala Sitharaman emphasised employment-led development and boosting manufacturing in India, during the Budget debate in the Lok Sabha on Tuesday. The effective capital expenditure in the budget is projected at Rs 15.48 lakh crore, with the fiscal deficit expected at 4.4%, she said. The Budget was being presented in the backdrop of immense uncertainty and the change in the global macroeconomic environment makes it challenging, she added.
The rupee closed stronger against the US dollar on Tuesday, strengthening by a sharp 65 paise to close at 86.83 against the US dollar.
It earlier gained 13 paise against the US dollar to open at 87.35 on Tuesday. This recovery followed a significant weakening on Monday, when the rupee reached 87.92 against the dollar due to fresh threats of tariffs on steel and aluminium imports by the US.
The sharp move in the rupee is being attributed to intervention by the Reserve Bank of India.
Vodafone Idea Ltd. on Tuesday announced that it is planning to commercially launch its 5G services in Mumbai in March. The telecom firm further said that it will launch its 5G services for the states of Delhi, Bengaluru, Chandigarh, and Patna in April.
In addition, it said that the government's waiver of bank guarantees for past spectrum purchases would go a long way in ensuring expansion of network coverage in India.
The company’s consolidated net loss narrowed less than expected in the third quarter to Rs 6,609 crore from Rs 7,175.9 crore in the preceding quarter.
