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Fed holds rates steady, flags rising risks of inflation and unemployment

Fed holds rates steady, flags rising risks of inflation and unemployment
The Fed said it would continue to shrink its balance sheet at the reduced pace announced at the March meeting. The monthly cap on the amount of Treasury securities that can mature without being reinvested held at billion, while the cap for mortgage-backed securities was also unchanged at billion.
Economists say it will take time for the full effect of the new tariffs to work through the economy. So far, the impact has mainly included a sharp decline in sentiment and a surge in imports. The US economy contracted at the start of the year for the first time since 2022, but a gauge of underlying demand stayed firm.But the president has since insisted that he does not intend to fire Powell.The central bank announced Tuesday that Kansas City Fed President Jeff Schmid would miss the May meeting due to the recent death of his wife. Kansas City was represented by First Vice President Kim Robbins. Schmid’s vote passed to alternate member Neel Kashkari, president of the Minneapolis Fed.“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the statement said.Officials voted unanimously to keep the benchmark federal funds rate in a range of 4.25 per cent to 4.5 per cent, where it has been since December.More stories like this are available on bloomberg.comRecession concerns have grown, and some businesses have reported pausing investment decisions given the uncertainty. Still, the labor market remains resilient, with employers adding 177,000 jobs in April. Fed officials described labor market conditions as “solid,” according to the statement.President Donald Trump‘s trade policy has unleashed a wave of uncertainty across the economy. While the levies are still being negotiated, economists widely expect the expansive tariffs to boost inflation and weigh on growth. That would pit policymakers’ two goals – price stability and maximum employment – against one another.

Economic picture

With unemployment still low and demand steady, Fed officials have said they are comfortable keeping rates unchanged until they have a better understanding of where the economy is headed. Trump, however, has repeatedly said the central bank should lower borrowing costs.Trump, meanwhile, has ramped up his criticism of Powell in recent weeks. At one point, Trump said in a social media post that “Powell’s termination cannot come fast enough!” Federal Reserve officials held interest rates steady for a third-straight meeting and emphasised they see a growing risk of both higher inflation and rising unemployment.Companies scrambled in the first quarter to import merchandise ahead of the tariffs, and a surge in consumer spending in March suggested households also sought to frontload purchases. Key inflation gauges cooled in the month.Chair Jerome Powell will hold a press conference with reporters at 2:30 p.m. in Washington.Powell and his colleagues are determined to keep tariffs from sparking a persistent rise in inflation, and several officials have signaled they would not support lowering interest rates preemptively to protect against a slowing economy.The S&P 500 index of US stocks and Treasury yields fell following the announcement, while the dollar pared gains.“Uncertainty about the economic outlook has increased further,” the Federal Open Market Committee said in a statement Wednesday at the conclusion of a two-day meeting in Washington. “The committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”US Federal Reserve Chair Jerome Powell

Published on May 8, 2025

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Fed holds rates steady, flags rising risks of inflation and unemployment

Fed holds rates steady, flags rising risks of inflation and unemployment
Federal Reserve officials held interest rates steady for a third-straight meeting and emphasised they see a growing risk of both higher inflation and rising unemployment.
Published on May 8, 2025 With unemployment still low and demand steady, Fed officials have said they are comfortable keeping rates unchanged until they have a better understanding of where the economy is headed. Trump, however, has repeatedly said the central bank should lower borrowing costs.Recession concerns have grown, and some businesses have reported pausing investment decisions given the uncertainty. Still, the labor market remains resilient, with employers adding 177,000 jobs in April. Fed officials described labor market conditions as “solid,” according to the statement.Powell and his colleagues are determined to keep tariffs from sparking a persistent rise in inflation, and several officials have signaled they would not support lowering interest rates preemptively to protect against a slowing economy.Chair Jerome Powell will hold a press conference with reporters at 2:30 p.m. in Washington.More stories like this are available on bloomberg.com“Uncertainty about the economic outlook has increased further,” the Federal Open Market Committee said in a statement Wednesday at the conclusion of a two-day meeting in Washington. “The committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen.”The Fed said it would continue to shrink its balance sheet at the reduced pace announced at the March meeting. The monthly cap on the amount of Treasury securities that can mature without being reinvested held at billion, while the cap for mortgage-backed securities was also unchanged at billion.

Economic picture

The central bank announced Tuesday that Kansas City Fed President Jeff Schmid would miss the May meeting due to the recent death of his wife. Kansas City was represented by First Vice President Kim Robbins. Schmid’s vote passed to alternate member Neel Kashkari, president of the Minneapolis Fed.“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” the statement said.President Donald Trump‘s trade policy has unleashed a wave of uncertainty across the economy. While the levies are still being negotiated, economists widely expect the expansive tariffs to boost inflation and weigh on growth. That would pit policymakers’ two goals – price stability and maximum employment – against one another.Trump, meanwhile, has ramped up his criticism of Powell in recent weeks. At one point, Trump said in a social media post that “Powell’s termination cannot come fast enough!” Companies scrambled in the first quarter to import merchandise ahead of the tariffs, and a surge in consumer spending in March suggested households also sought to frontload purchases. Key inflation gauges cooled in the month.Officials voted unanimously to keep the benchmark federal funds rate in a range of 4.25 per cent to 4.5 per cent, where it has been since December.US Federal Reserve Chair Jerome Powell

Economists say it will take time for the full effect of the new tariffs to work through the economy. So far, the impact has mainly included a sharp decline in sentiment and a surge in imports. The US economy contracted at the start of the year for the first time since 2022, but a gauge of underlying demand stayed firm.The S&P 500 index of US stocks and Treasury yields fell following the announcement, while the dollar pared gains.But the president has since insisted that he does not intend to fire Powell.

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Axiom-4 mission carrying Indian astronaut Shukla to ISS postponed to June 10

Axiom-4 mission carrying Indian astronaut Shukla to ISS postponed to June 10
Axiom-4 mission carrying Indian astronaut Shukla to ISS postponed to June 10

The Axiom-4 astronauts will perform around 60 scientific studies and activities representing 31 countries during their 14-day stay at the ISS. “We will have one with an Indian VVIP,” Shukla said to a question on interaction with the prime minister from space. Prime Minister Narendra Modi is expected to interact with the Axiom-4 crew during their 14-day stay at the ISS. On the Indian cultural reference to swan – the zero gravity indicator, Shukla said the bird was the vehicle of goddess Saraswati symbolising wisdom, learning and purity. Shukla said he would be carrying Indian delicacies such as mango nectar, moong dal halwa and carrot halwa on the space flight.”I hope to ignite curiosity and excitement in young minds, to let them know that space is not a distant dream, but a future they can shape,” he said. The Indian astronaut will be carrying artefacts designed by the National Institute of Design, symbolising India’s creativity and innovation to the ISS.Published on June 3, 2025 Shukla said he will also be carrying a special memento on his space flight for his mentor Rakesh Sharma, who undertook space travel in 1984 as part of the Russian mission. Once docked, the astronauts plan to spend up to 14 days aboard the orbiting laboratory, conducting science, outreach, and commercial activities.Axiom Space’s mission to the International Space Station (ISS), carrying Indian astronaut Shubhanshu Shukla and three others, has been postponed to June 10 at 5:52 pm IST, onboard SpaceX’s Falcon-9 rocket from the Kennedy Space Centre in Florida. He said the special memento would be revealed once he returns from the Axiom-4 mission and meets Sharma, who has guided him throughout the training period.”I will be speaking with educators, the members of the space industry, and students – sharing not just experiences, but inspiration. If even a young member is moved to explore the cosmos just because of this mission, we will have already succeeded,” he said. In a pre-flight press conference, the Axiom-4 crew comprising Mission Commander Peggy Whitson, Mission Pilot Shukla and mission specialists Slawosz Uznanski-Wisniewski from Poland and Tibor Kapu from Hungary, unveiled a zero gravity indicator called ‘Joy’ – a swan which has different cultural references in each of the participating nations in the mission.”I carry not just technical equipment but the hopes and dreams of 1.4 billion Indians. In many ways, I see myself as a bridge between Earth and space,” the Lucknow-born said. The spaceflight was originally scheduled for May 29 and then rescheduled to June 8. The announcement was made during a virtual press conference with the Axiom-4 mission crew members, who are currently in quarantine before their travel to the ISS.”I call upon every ‘Bharatvasi’ to join us, participate, engage and dream boldly about the future,” Shukla said in the virtual press conference from the launch centre in Florida, US. Shukla is set to conduct exclusive food and nutrition-related experiments developed under a collaboration between the Indian Space Research Organisation (ISRO) and the Department of Biotechnology (DBT), with support from NASA. “It is said to have the rare ability to separate milk from water — a symbolism that is a powerful reminder of discernment in the age of distraction. To carry this symbol is to carry the essence of the mission — pursuit of knowledge, clarity of purpose and grace under pressure,” Shukla said. “For the people of India: This mission is a milestone and I request India to pray for the success of the mission. Even stars are attainable, Jai Hind,” Shukla said in brief remarks in Hindi. Shukla will be the second Indian to travel to space, four decades after Rakesh Sharma’s iconic spaceflight onboard Russia’s Soyuz spacecraft in 1984. Shukla said he hoped that his travel to space would generate curiosity among the young minds, who were key for India’s ambitious plans for space exploration. He said the Ax-4 crew will interact with school students, educators and members of the Indian space industry.

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Axiom-4 mission carrying Indian astronaut Shukla to ISS postponed to June 10

Axiom-4 mission carrying Indian astronaut Shukla to ISS postponed to June 10
Axiom-4 mission carrying Indian astronaut Shukla to ISS postponed to June 10

He said the special memento would be revealed once he returns from the Axiom-4 mission and meets Sharma, who has guided him throughout the training period. He said the Ax-4 crew will interact with school students, educators and members of the Indian space industry. Once docked, the astronauts plan to spend up to 14 days aboard the orbiting laboratory, conducting science, outreach, and commercial activities. Prime Minister Narendra Modi is expected to interact with the Axiom-4 crew during their 14-day stay at the ISS. On the Indian cultural reference to swan – the zero gravity indicator, Shukla said the bird was the vehicle of goddess Saraswati symbolising wisdom, learning and purity. Shukla will be the second Indian to travel to space, four decades after Rakesh Sharma’s iconic spaceflight onboard Russia’s Soyuz spacecraft in 1984.”I will be speaking with educators, the members of the space industry, and students – sharing not just experiences, but inspiration. If even a young member is moved to explore the cosmos just because of this mission, we will have already succeeded,” he said. In a pre-flight press conference, the Axiom-4 crew comprising Mission Commander Peggy Whitson, Mission Pilot Shukla and mission specialists Slawosz Uznanski-Wisniewski from Poland and Tibor Kapu from Hungary, unveiled a zero gravity indicator called ‘Joy’ – a swan which has different cultural references in each of the participating nations in the mission. “For the people of India: This mission is a milestone and I request India to pray for the success of the mission. Even stars are attainable, Jai Hind,” Shukla said in brief remarks in Hindi. The announcement was made during a virtual press conference with the Axiom-4 mission crew members, who are currently in quarantine before their travel to the ISS. Shukla said he hoped that his travel to space would generate curiosity among the young minds, who were key for India’s ambitious plans for space exploration.Published on June 3, 2025 The Indian astronaut will be carrying artefacts designed by the National Institute of Design, symbolising India’s creativity and innovation to the ISS. Shukla is set to conduct exclusive food and nutrition-related experiments developed under a collaboration between the Indian Space Research Organisation (ISRO) and the Department of Biotechnology (DBT), with support from NASA. “I carry not just technical equipment but the hopes and dreams of 1.4 billion Indians. In many ways, I see myself as a bridge between Earth and space,” the Lucknow-born said. Shukla said he will also be carrying a special memento on his space flight for his mentor Rakesh Sharma, who undertook space travel in 1984 as part of the Russian mission. The spaceflight was originally scheduled for May 29 and then rescheduled to June 8.Axiom Space’s mission to the International Space Station (ISS), carrying Indian astronaut Shubhanshu Shukla and three others, has been postponed to June 10 at 5:52 pm IST, onboard SpaceX’s Falcon-9 rocket from the Kennedy Space Centre in Florida.”I hope to ignite curiosity and excitement in young minds, to let them know that space is not a distant dream, but a future they can shape,” he said.”It is said to have the rare ability to separate milk from water — a symbolism that is a powerful reminder of discernment in the age of distraction. To carry this symbol is to carry the essence of the mission — pursuit of knowledge, clarity of purpose and grace under pressure,” Shukla said. Shukla said he would be carrying Indian delicacies such as mango nectar, moong dal halwa and carrot halwa on the space flight. “We will have one with an Indian VVIP,” Shukla said to a question on interaction with the prime minister from space. The Axiom-4 astronauts will perform around 60 scientific studies and activities representing 31 countries during their 14-day stay at the ISS.”I call upon every ‘Bharatvasi’ to join us, participate, engage and dream boldly about the future,” Shukla said in the virtual press conference from the launch centre in Florida, US.

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Data centre equipment manufacturing Nidec inaugurates ₹600 cr plant in Hubballi

Data centre equipment manufacturing Nidec inaugurates ₹600 cr plant in Hubballi

Speaking at the event, Minister Patil said the new plant is expected to provide more jobs in addition to the initial 800 jobs. “While the facility has initially created 800 jobs, the number is expected to rise to 3000 jobs once the plant becomes fully operational.” He added, 20 acres of land has been allocated for the battery solutions unit.The facility was inaugurated by Karnataka’s Minister for Large and Medium Industries, M.B. Patil.The plant will manufacture heavy-duty machines of 2 MW, 3 MW, and 4 MW capacity, essential for data centres, using advanced technology from Japan and France. These machines will be exported to markets in the United States, the UAE, and Europe, alongside serving the domestic market.Published on June 2, 2025 Highlighting the government’s focus on industrial growth in North Karnataka, Patil said the state has introduced several concessions and facilities under its new industrial policy. “For Nidec’s project, we ensured timely facilitation by allotting the required land within just two years,” he added.Data centre equipment manufacturing Nidec has inaugurated its ₹600 crore manufacturing plant in Hubballi. The facility is expected to create 800 direct jobs.In addition to heavy machinery, the plant will also produce power backup generators, wind generators, alternators for data centres, EV motors for three wheelers, four wheelers, trucks, elevator motors, and electronic drives-MV and LV.Addressing concerns about water usage, the minister clarified, “The Krishna River Water Tribunal has allocated 4 TMC of water for industrial purposes, of which we are currently using only 0.5 TMC. We are not diverting water meant for agriculture. Moreover, the industries are provided only downstream water from the Hidkal Dam.”

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Data centre equipment manufacturing Nidec inaugurates ₹600 cr plant in Hubballi

Data centre equipment manufacturing Nidec inaugurates ₹600 cr plant in Hubballi

Speaking at the event, Minister Patil said the new plant is expected to provide more jobs in addition to the initial 800 jobs. “While the facility has initially created 800 jobs, the number is expected to rise to 3000 jobs once the plant becomes fully operational.” He added, 20 acres of land has been allocated for the battery solutions unit.Highlighting the government’s focus on industrial growth in North Karnataka, Patil said the state has introduced several concessions and facilities under its new industrial policy. “For Nidec’s project, we ensured timely facilitation by allotting the required land within just two years,” he added.Addressing concerns about water usage, the minister clarified, “The Krishna River Water Tribunal has allocated 4 TMC of water for industrial purposes, of which we are currently using only 0.5 TMC. We are not diverting water meant for agriculture. Moreover, the industries are provided only downstream water from the Hidkal Dam.”In addition to heavy machinery, the plant will also produce power backup generators, wind generators, alternators for data centres, EV motors for three wheelers, four wheelers, trucks, elevator motors, and electronic drives-MV and LV.The plant will manufacture heavy-duty machines of 2 MW, 3 MW, and 4 MW capacity, essential for data centres, using advanced technology from Japan and France. These machines will be exported to markets in the United States, the UAE, and Europe, alongside serving the domestic market.Data centre equipment manufacturing Nidec has inaugurated its ₹600 crore manufacturing plant in Hubballi. The facility is expected to create 800 direct jobs.The facility was inaugurated by Karnataka’s Minister for Large and Medium Industries, M.B. Patil.Published on June 2, 2025

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DRDO to soon issue EOI for AMCA, HAL getting ready to bid through a consortium

DRDO to soon issue EOI for AMCA, HAL getting ready to bid through a consortium
DRDO to soon issue EOI for AMCA, HAL getting ready to bid through a consortium

Sources said the expression of interest to be issued by the ADA is expected to tap into the emerging indigenous aerospace sector and offer them opportunities to get into the manufacturing and supply chain of 5.5 generation stealth AMCA. Published on June 1, 2025 The announcement made it clear that only an indigenous firm, including a non-government firm, can pitch for the AMCA tender though they will be free to form either a joint venture with other entities or get into a consortium.Some of the similar Indian companies — like Tata Advanced Systems Ltd (TASL), L&T, Mahindra Aerospace, Dynamatic Technologies, Bharat Forge, Sansera Engineering, Azad Engineering, Aequs, and Godrej Aerospace — are already offering world class body parts, systems, sub-systems and components to leading aircraft manufacturers like Boeing and Airbus.They had also informed the Ministry of Defence about it before Empowered Committee for Capability Enhancement of the Indian Air Force (IAF), headed by Defence Secretary Rajesh Kumar Singh, gave its report on March 3, suggesting short, medium and long-term measures to achieve desired capability enhancement goals of IAF in an “optimal manner.” Vertical fins and radars have been outsourced to the TASL, and wings to the L&T. Besides, there are others too who are contributing to the development of the Tejas jets.For that, while the first centre fuselage assembly for the LCA Mk-1A was handed over by Vem Technologies to HAL in Hyderabad on May 30, the rear fuselage is being done by Alpha Tocol.The state-owned company also suggested its willingness to open up for private participation in the manufacturing of fighter jets to expedite the whole process and augment the domestic aerospace ecosystem.The ADA , which had conceived the project, will select the production partner and lead the programme for initial manufacturing of five prototypes of the next general stealth aircraft. Depending on the outcome, orders will follow.Currently, the HAL has to evaluate 24 responses it has got from the indigenous companies to form a consortium to bid for the AMCA programme. To gear itself for public-private partnership, sources said, Hindustan Aeronautics Limited (HAL), which will be for the first time facing a competition to get a licence to manufacture fighter aircraft for the IAF, had already sought proposals from indigenous companies last year to put together a model for future speedier manufacturing of aerospace platforms.Defence Research and Development Organisation’s (DRDO’s) Aeronautical Development Agency (ADA) is likely to issue an expression of interest in a few weeks to invite bids for selecting a production partner for 5.5 generation Advanced Medium Combat Aircraft (AMCA) as the first prototype is scheduled for sometime between 2026 to 2027.While HAL will be the lead partner, other players shortlisted on the basis of their experience and financial strength will get equity depending on the money invested by them, said sources. Defence Minister Rajnath Singh on May 26 cleared the programme to begin production of the AMCA, through maiden private participation, to overcome the long awaited capacity deficiency of the Indian Air Force. In fact, HAL is already experimenting with the public-private partnership. A Tejas LCA Mk-1A aircraft, being built for the first time with private participation, will be ready in some time. Other global aerospace companies Pratt & Whitney, Rolls-Royce and Collins Aerospace, too, are expanding supply sourcing from India.

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DRDO to soon issue EOI for AMCA, HAL getting ready to bid through a consortium

DRDO to soon issue EOI for AMCA, HAL getting ready to bid through a consortium
DRDO to soon issue EOI for AMCA, HAL getting ready to bid through a consortium

To gear itself for public-private partnership, sources said, Hindustan Aeronautics Limited (HAL), which will be for the first time facing a competition to get a licence to manufacture fighter aircraft for the IAF, had already sought proposals from indigenous companies last year to put together a model for future speedier manufacturing of aerospace platforms.While HAL will be the lead partner, other players shortlisted on the basis of their experience and financial strength will get equity depending on the money invested by them, said sources. Other global aerospace companies Pratt & Whitney, Rolls-Royce and Collins Aerospace, too, are expanding supply sourcing from India.The announcement made it clear that only an indigenous firm, including a non-government firm, can pitch for the AMCA tender though they will be free to form either a joint venture with other entities or get into a consortium.Published on June 1, 2025 The state-owned company also suggested its willingness to open up for private participation in the manufacturing of fighter jets to expedite the whole process and augment the domestic aerospace ecosystem.For that, while the first centre fuselage assembly for the LCA Mk-1A was handed over by Vem Technologies to HAL in Hyderabad on May 30, the rear fuselage is being done by Alpha Tocol.In fact, HAL is already experimenting with the public-private partnership. A Tejas LCA Mk-1A aircraft, being built for the first time with private participation, will be ready in some time. Defence Minister Rajnath Singh on May 26 cleared the programme to begin production of the AMCA, through maiden private participation, to overcome the long awaited capacity deficiency of the Indian Air Force. Sources said the expression of interest to be issued by the ADA is expected to tap into the emerging indigenous aerospace sector and offer them opportunities to get into the manufacturing and supply chain of 5.5 generation stealth AMCA. They had also informed the Ministry of Defence about it before Empowered Committee for Capability Enhancement of the Indian Air Force (IAF), headed by Defence Secretary Rajesh Kumar Singh, gave its report on March 3, suggesting short, medium and long-term measures to achieve desired capability enhancement goals of IAF in an “optimal manner.” Vertical fins and radars have been outsourced to the TASL, and wings to the L&T. Besides, there are others too who are contributing to the development of the Tejas jets.Defence Research and Development Organisation’s (DRDO’s) Aeronautical Development Agency (ADA) is likely to issue an expression of interest in a few weeks to invite bids for selecting a production partner for 5.5 generation Advanced Medium Combat Aircraft (AMCA) as the first prototype is scheduled for sometime between 2026 to 2027.Currently, the HAL has to evaluate 24 responses it has got from the indigenous companies to form a consortium to bid for the AMCA programme. The ADA , which had conceived the project, will select the production partner and lead the programme for initial manufacturing of five prototypes of the next general stealth aircraft. Depending on the outcome, orders will follow.Some of the similar Indian companies — like Tata Advanced Systems Ltd (TASL), L&T, Mahindra Aerospace, Dynamatic Technologies, Bharat Forge, Sansera Engineering, Azad Engineering, Aequs, and Godrej Aerospace — are already offering world class body parts, systems, sub-systems and components to leading aircraft manufacturers like Boeing and Airbus.

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