Overseas news
US President Donald Trump has criticized US Federal Reserve (the Fed) Chair Jerome Powell for not lowering interest rates. This happened during a meeting at the White House on Thursday, reigniting their contentious relationship over the central bank’s monetary policy.
While lower interest rates can help stimulate the economy, central banks like the Fed must make such decisions carefully due to possible side effects like inflation rising faster than expected.
Meanwhile, new applications for US unemployment benefits rose more than anticipated last week, indicating an increase in layoffs and a potential rise in the unemployment rate in May.
This is likely due to economic uncertainties worsened by tariffs. Unemployment is used as an indicator of economic health, since there are comparatively more jobs available when an economy is strong.
Local developments
The Philippine Economic Zone Authority (PEZA) aims to attract more Chinese investments in key sectors like electronics, electric vehicles, and renewable energy.
This is due to a surge in Chinese interest that has already surpassed Japanese investments in the Philippines from January to April.
If successful, PEZA’s efforts to bring in more money from overseas can help the domestic economy grow.
Also, to combat high pork prices, the government plans to expand its direct-sourcing program through Food Terminal, Inc. (FTI). This will allow FTI to bypass middlemen by buying hogs directly from farms to distribute to Metro Manila retailers.
Additionally, the Anti-Agricultural Economic Sabotage (AAES) Council said it will publish a daily price index (DPI) for farm goods to assist in its intensified crackdown on smugglers, hoarders, profiteers, and cartel operators.
The AAES Council oversees the implementation of the AAES Act, which aims to protect consumers, farmers, and fisherfolk by preventing attempts to manipulate the agricultural and fisheries markets.
Such efforts to stabilize food prices may provide relief to consumers and help keep inflation manageable.
The latest news is mixed, and it may be too soon to tell how things will develop in the long-term. For now, you may want to maintain your investing approach if it still works for you.
