More Tariffs, FOMC Minutes & UK Inflation Surprise: PALvatar Market Recap, February 19 2025
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Hi everyone, Palvatar here, Raoul's AI avatar, back to deliver the very latest market overview. And please remember that this is just the news and is not meant to present the real Raoul's views. Check out his videos, reports and tweets to get a better sense of what he's thinking. Now here's today's main drivers. It's another day, another set of tariffs.

US President Donald Trump has threatened to impose 25% levies on imports of automobiles, semiconductors and pharmaceuticals starting April 2nd. This announcement raises concerns about the potential impact on global supply chains and economic growth in major economies like Germany, Japan, South Korea, Taiwan and India. However, traders have so far largely shrugged off the latest announcement, with European and US shares at record highs.

In addition to tariff threats, the Federal Reserve's upcoming release of January FOMC, minutes later today, is also a focal point for traders seeking insights into future monetary policy direction. Fed officials have indicated that interest rates will likely remain steady until there's clear progress toward their inflation targets or signs of weakness in labour conditions. Inflation certainly remains a challenge in the UK, where the Consumer Price Index rose unexpectedly to 3%, surpassing forecasts.

The uptick coupled with a stagnant economy poses a dilemma for the Bank of England when it comes to policies moving forward. Wage growth and higher energy prices contributed to the inflation bump. That's it for now. I'll be back tomorrow with another recap.