The End of the Trump Administration's “Blame Game Era”: Yellen Takes Over from Powell
BlockBeats News, May 25th, Kevin Warsh, personally appointed by U.S. President Trump, was officially sworn in as the Chair of the Federal Reserve. It is believed that Trump will, for the first time, take full political responsibility for the performance of the U.S. economy and inflation.
The report pointed out that Trump had long blamed the former Chair, Powell, for high interest rates, a sluggish housing market, and economic slowdown. However, with Warsh taking office, the Fed’s policy is now seen as a direct extension of the "Trump economy."
The current U.S. economy is facing multiple pressures, including the 30-year mortgage rate rising above 6.5%, PCE inflation reaching 3.5%, and the national average gasoline price surpassing $4.55 per gallon. The market is concerned that, amidst high inflation, the Fed may be forced to continue raising interest rates, further impacting the prospects of the Republican midterm elections.
In addition, Warsh advocates for weakening forward guidance, increasing policy uncertainty, and the Fed’s April meeting saw a near 30-year high in dissenting votes, indicating significant internal division.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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BUZZ - Broker Perspectives: Analysts Express Doubts Over Starbucks and Chipotle Acquisition
Latest Update October 9 – The Financial Times reported on Thursday that Starbucks (SBUX.O) has explored a potential acquisition of Chipotle (CMG.N). This move would bring CEO Brian Niccol back to the Mexican burrito chain he once led. Starbucks declined to comment, saying the company remains "fully focused" on its business turnaround. Chipotle's stock fell about 4% to $31.32 on Friday, after surging 6.2% in the previous trading session. Limited strategic rationale BTIG expressed "high skepticism," stating that the deal does not make sense operationally, would cause significant dilution for Starbucks shareholders, and would disrupt management operations. "Over the years we've heard many stories about multi-brand acquisitions... but few have materialized, and even fewer have succeeded," BTIG noted. William Blair pointed out that Starbucks’ $9.4 billion net debt as of June makes it difficult to finance an acquisition and could push the combined company’s leverage ratio to about six times—considered high for the restaurant industry. D.A. Davidson stated the probability of the deal succeeding is 20% or less, given the significant differences between the brands and the apparent lack of clear synergies. Raymond James noted that due to the low overlap in menus, supply chain benefits are likely limited, while performance among multi-brand restaurant platforms has been mixed. eMarketer’s Suzy Davidkhanian commented that Niccol's familiarity may reduce execution risk, but investors might still see the deal as a "costly distraction" during Starbucks’ transformation. (For the convenience of non-English speakers, Reuters automatically translates its reports into several other languages. Automated translation may be inaccurate or fail to include necessary context; Reuters does not guarantee the accuracy of automated translated text and provides it solely for readers’ convenience. Reuters accepts no responsibility for any damage or loss resulting from the use of automated translation functions.)
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