IMF cuts its global growth forecasts for this year
The International Monetary Fund announced a major cut in its forecasted for global GDP growth in 2025, revising them downward to 2.8% from 3.3% in previous January forecasts, while cutting 2026 forecasts to 3.0% from 3.3%.
The IMF attributed the downgrade to the impact of the US tariffs, which disrupted global trade and supply chains.
The steep downgrade reflects the growing concerns about the ramifications of US trade policies, as major tensions flare with trade partners such as China and the EU, which could lead to an even slower worldwide growth.
IMF’s growth forecasts
The International Monetary Fund cut US GDP growth forecast for 2025 from 2.7% to 1.8%.
It UK GDP growth forecast to 1.1% in 2025 from 1.6%, and to 1.6% in 2026 from 1.5% in previous forecasts.
The IMF expects global inflation to hit 4.3% in 2025, and 3.6% in 2026.
It raised UK inflation forecasts to 3.1% in 2025 from 2.4%, and expects inflation to reach 2.2% next year.
The IMF expects the Bank of Japan to raise interest rates at a slower pace than previously expected due to US tariffs.
Bitcoin hits seven-week high on new corporate purchases
Bitcoin rose on Tuesday and expanded the gains for the fourth straight session, hitting a seven-week high and approaching $90,000 once more.
It comes amid improving sentiment after major corporations announced new bitcoin purchases, while the dollar weakened due to President Trump’s attacks against Fed Chair Powell.
The Price
Bitcoin rose 1.55% at Bitstamp today to $88,874, the highest since March 7, with a session-low at $87,094.
On Monday, bitcoin rallied 2.75% as the dollar collapsed.
Crypto Market Value
The market value of cryptocurrencies rose by $40 billion on Tuesday to a total of $2.865 trillion.
MicroStrategy
Through the X Platform, MicroStrategy’s co-founder and chairman Micheal Saylor announced another round of bitcoin purchases today at 6556 units, raising the company’s total holdings to a new record high.
The purchase occurred between April 14 and 20, with the company spending $555.85 million, averaging $84,785 per unit.
Following this new acquisition, the company now holds 538,200 units with an average price of $67,828 per unit, totaling $36.50 billion in value.
MetaPlanet
Similarly, Japan’s MetaPlanet increased its bitcoin holdings by 330 units worth $28.25 million, averaging $86,605 per unit.
Following the round of purchases, MetaPlanet’s holdings rose to a record 4855 units, worth $405.90 million
The Dollar
The dollar index fell 0.3% on Tuesday on track for the third straight session, and is about to hit three-year lows at 97.92 against a basket of major rivals.
Trump escalated his attacks against Fed Chair Jerome Powell and called him “a big loser” and “Mr Too late”, and demanded the Fed once more to cut interest rates.
The White House said it’s considering ways to fire Fed Chair Jerome Powell after Trump expressed urgent desires to terminate him due to disagreements about monetary policies.
Such news continues to rattle the markets, which depend heavily on the independence of the Federal Reserve from any political interference as a pivotal mainstay in the global financial system.
Gold pierces $3500 for the first time in history
Gold prices rallied in European trade on Tuesday and expanded the gains for the second straight session, hitting a fresh record high and trading above $3500 for the first time in history.
The gains come amid current weakness for the dollar, which is impacted by a loss of confidence in US assets due to constant attacks by US President Trump against Fed Chair Powell.
Prices
Gold prices rose 2.2% today to $3500 an ounce, a record high, with a session-low at $3412.
On Monday, gold ros 2.9%, the third profit in four days amid concerns about the independence of the Federal Reserve.
US Dollar
The dollar index fell 0.3% on Tuesday on track for the third straight session, and is about to hit three-year lows at 97.92 against a basket of major rivals.
Trump escalated his attacks against Fed Chair Jerome Powell and called him “a big loser” and “Mr Too late”, and demanded the Fed once more to cut interest rates.
The White House said it’s considering ways to fire Fed Chair Jerome Powell after Trump expressed urgent desires to terminate him due to disagreements about monetary policies.
Such news continues to rattle the markets, which depend heavily on the independence of the Federal Reserve from any political interference as a pivotal mainstay in the global financial system.
Chicago Fed President Austin Goolsbey said he hopes the US won’t turn into an environment where the Fed’s ability to set monetary policies independently from political pressure is undermined.
According to the Fedwatch tool, the odds of a May Fed 0.25% rate cut stood at 12%.
The odds of such a cut in June stood at 70%.
SPDR
Gold holdings at the SPDR Gold Trust remained unchanged yesterday at 952.29 tons.
Euro approaches four-year peak before Lagarde's remarks
The euro rose in European trade on Tuesday on track for the third straight profit against the dollar, while trading near four-year highs as the dollar weakens after US President Trump’s constant attacks against Fed Chair Jerome Powell.
Now investors await European Central Bank President Christine Lagarde’s remarks for more clues on the future path of European interest rates.
The Price
The EUR/USD price rose 0.25% today to $1.1541, with a session-low at $1.1481.
The euro rose 1.1% on Monday against the dollar, the second profit in a row amid a loss of confidence in the dollar.
US Dollar
The dollar index fell 0.2% on Tuesday on track for the third straight session, and is about to hit three-year lows at 97.92 against a basket of major rivals.
A New Attack
Trump called Powell “big loser” and “Mr Too late”, and called on him and the Fed once more to cut interest rates.
The White House said it’s considering ways to fire Fed Chair Jerome Powell after Trump expressed urgent desires to terminate him due to disagreements about monetary policies.
Such news continues to rattle the markets, which depend heavily on the independence of the Federal Reserve from any political interference as a pivotal mainstay in the global financial system.
Lagarde
ECB President Christine Lagarde is scheduled to speak to CNBC later today and discuss the latest developments in the eurozone and the US tariff crisis.
Last week, Lagarde said that tariffs represent a shock, but their impact on inflation remains unclear.
She said the picture might not become clear by the next policy meeting in June, as the 90-day pause on tariffs would still be in place by then.
European Rates
Reports showed that some ECB officials see a high probability of a rate cut in June.
Markets are pricing in a 60% chance of an ECB rate cut in June.