Business
Fed holds rates steady, flags rising risks of inflation and unemployment
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.”
Published on May 8, 2025
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.
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.
Business
Amazon India bets big on Tier-2, Tier-3 cities
Perhaps the most ambitious target revealed by Kumar is Amazon’s goal to enable billion in exports from India by 2030 through its Global Selling programme, which already supports 150,000 Indian sellers reaching international markets.After returning to helm Amazon’s India operations, Country Manager Samir Kumar revealed that 70 per cent of Amazon’s new customers now come from Tier-2 and Tier-3 cities.The move comes as part of Amazon’s renewed push in India, backed by a massive billion investment commitment to be deployed by 2030, on top of the billion it has already invested in the country over the past decade.
Kumar emphasised that the company is still in its early days. “There’s still so much potential we haven’t fully tapped into yet,” he said. “We have a team of innovators constantly exploring new ideas and asking critical questions,” he added.Published on May 6, 2025 He pointed to the one million direct and indirect jobs already created, with a target of reaching two million. “The scale of what we’ve built is enormous, but what hasn’t changed is the energy and focus on transforming how India buys and sells.”The e-commerce giant is poised for an aggressive expansion of its quick commerce service following ‘very encouraging results’ from its Bengaluru pilot.
On job creation
With its massive investment plans, quick commerce expansion, and renewed focus on smaller cities and towns, Amazon is signalling that India remains central to its global ambitions despite mounting regulatory challenges and fierce local competition.“The speed and quality of service they were getting weren’t satisfactory compared to metro cities,” Kumar acknowledged. “So, we’re putting serious investment into fixing that — to improve speed, experience and reliability.”
Central to Amazon’s India strategy is its seller ecosystem, which has grown to 1.6 million businesses nationwide. The marketplace has simultaneously focused on reducing fees for sellers to enable them to offer more affordable selection, particularly for value-conscious customers in smaller towns.
“Stay tuned. We are going to go big,” Kumar told businessline in an exclusive interview, confirming that Amazon is preparing to challenge established players like Blinkit, Zepto, and Swiggy Instamart in the rapidly growing segment despite being seen as a late entrant.Perhaps the most ambitious target revealed by Kumar is Amazon’s goal to enable billion in exports from India by 2030 through its Global Selling programme, which already supports 150,000 Indian sellers reaching international markets.Kumar emphasised that the company is still in its early days. “There’s still so much potential we haven’t fully tapped into yet,” he said. “We have a team of innovators constantly exploring new ideas and asking critical questions,” he added.After returning to helm Amazon’s India operations, Country Manager Samir Kumar revealed that 70 per cent of Amazon’s new customers now come from Tier-2 and Tier-3 cities.“The speed and quality of service they were getting weren’t satisfactory compared to metro cities,” Kumar acknowledged. “So, we’re putting serious investment into fixing that — to improve speed, experience and reliability.”Published on May 6, 2025
On job creation
With its massive investment plans, quick commerce expansion, and renewed focus on smaller cities and towns, Amazon is signalling that India remains central to its global ambitions despite mounting regulatory challenges and fierce local competition.Central to Amazon’s India strategy is its seller ecosystem, which has grown to 1.6 million businesses nationwide. The marketplace has simultaneously focused on reducing fees for sellers to enable them to offer more affordable selection, particularly for value-conscious customers in smaller towns.
When asked about India’s importance in Amazon’s global portfolio, Kumar was unequivocal: “India remains one of Amazon’s largest and most strategic e-commerce markets globally.”
The move comes as part of Amazon’s renewed push in India, backed by a massive billion investment commitment to be deployed by 2030, on top of the billion it has already invested in the country over the past decade.
Business
PM chairs meeting of panel to appoint new CBI director
Sood, a 1986-batch IPS officer of Karnataka cadre, was director general of police (DGP) of the state prior to his appointment. He took over as the Director of the premier investigative agency on May 25, 2023.
Sood, a 1986-batch IPS officer of Karnataka cadre, was director general of police (DGP) of the state prior to his appointment. He took over as the Director of the premier investigative agency on May 25, 2023.Prime Minister Narendra Modi on Monday chaired a meeting of the committee for the appointment of CBI Director which was also attended by Leader of Opposition in Lok Sabha Rahul Gandhi and Chief Justice of India Sanjiv Khanna. The appointment of the CBI Director is done by the central government on the recommendation of a three-member appointment committee, which is headed by the Prime Minister and comprises the leader of opposition in Lok Sabha and the Chief Justice of India. Published on May 5, 2025 The meeting was held at the Prime Minister’s Office here on Monday evening.
Business
India misses, China grabs
India has the world’s largest reserves of thorium — a million tonnes — particularly in its monazite-rich coastal sands. As per the three-stage nuclear programme envisioned by nuclear scientist Dr Homi Bhabha, the country would use thorium when it gets to the third stage. After 70 years of Independence, India has still not started on the second stage.“The US left its research publicly available, waiting for the right successor — we were that successor,” Xu Hongjie, a prominent Chinese nuclear physicist at the Shanghai Institute of Applied Physics, recently told the Guangming Daily. He said this after China revived a long-dormant American nuclear technology — thorium-fuelled molten salt reactor.The reactor — a small, experimental system capable of refuelling while operating — was recently brought online, marking significant progress in reimagining the future of nuclear energy. Though not ready for commercial use, it signals a global shift toward next-generation nuclear technologies.However, China swiftly picked up the technology left on the table by the Americans and created a secret facility in the Gobi Desert, near the Mongolian border. It is a small, 2MW facility, but enough to catapult China into a thorium regime.The US explored thorium reactors, especially molten salt types, back in the 1960s before shelving them in favour of uranium-based designs. Now, as the world confronts the twin challenges of climate change and energy security, thorium is making a comeback. Thorium reactors offer multiple advantages: less radioactive waste, more fuel-efficiency and lower risk of nuclear weapons proliferation.
More Like This
Published on May 4, 2025
The US explored thorium reactors, especially molten salt types, back in the 1960s before shelving them in favour of uranium-based designs. Now, as the world confronts the twin challenges of climate change and energy security, thorium is making a comeback. Thorium reactors offer multiple advantages: less radioactive waste, more fuel-efficiency and lower risk of nuclear weapons proliferation.India has the world’s largest reserves of thorium — a million tonnes — particularly in its monazite-rich coastal sands. As per the three-stage nuclear programme envisioned by nuclear scientist Dr Homi Bhabha, the country would use thorium when it gets to the third stage. After 70 years of Independence, India has still not started on the second stage.The reactor — a small, experimental system capable of refuelling while operating — was recently brought online, marking significant progress in reimagining the future of nuclear energy. Though not ready for commercial use, it signals a global shift toward next-generation nuclear technologies.“The US left its research publicly available, waiting for the right successor — we were that successor,” Xu Hongjie, a prominent Chinese nuclear physicist at the Shanghai Institute of Applied Physics, recently told the Guangming Daily. He said this after China revived a long-dormant American nuclear technology — thorium-fuelled molten salt reactor.Published on May 4, 2025
More Like This
However, China swiftly picked up the technology left on the table by the Americans and created a secret facility in the Gobi Desert, near the Mongolian border. It is a small, 2MW facility, but enough to catapult China into a thorium regime.
Fed holds rates steady, flags rising risks of inflation and unemployment
Amazon India bets big on Tier-2, Tier-3 cities
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