The US dollar rose to its highest level since April 25, reaching 4.73% on the benchmark 10-year Treasury note, after President-elect Donald Trump considered declaring a national economic emergency to implement tariffs on allies and adversaries. This move is expected to boost economic growth through deregulation and lower taxes, but may lead to increased inflation. The dollar index rose 0.28% to 109.00, with the euro falling 0.2% to $1.0318. Markets are pricing in a 39 basis point interest rate cut from the Federal Reserve this year, with a first cut likely to happen in June.
https://channelnewsasia.com/business/dollar-up-us-10-yr-yield-hits-8-12-month-high-tariff-report-4844301The global economy is facing concerns that US President-elect Donald Trump's tariff plan will lead to inflation, particularly if interest rates are forced to stay elevated due to higher consumer prices. This has led to a sell-off in bond markets worldwide and caused the yield on 30-year UK Treasury Gilts to reach its highest level since 1998. The eurozone inflation rate accelerated to 2.4% in December, making it difficult for the European Central Bank to cut interest rates to boost sluggish growth. Meanwhile, US services data showed a mixed picture, with the dollar rising against major rivals after initially falling back from earlier gains. Asian stocks closed higher due to speculation that Trump's tariff plans may be scaled back, following reports that his aides are considering applying tariffs only in certain critical sectors.
https://www.khaleejtimes.com/business/markets/inflation-concerns-pull-rug-out-from-wall-street-rallyThe United States Treasury Department's Office of Foreign Assets Control designated Gergely Rogán, the head of Hungary's prime minister Viktor Orbán's office, a corrupt government official due to his role in orchestrating a system where public contracts and resources are distributed to loyalists. The move is seen as a response by the outgoing Biden administration before its inauguration on January 20, with Acting Under Secretary Bradley T. Smith stating that the US will hold accountable individuals who use their power for personal gain at the expense of their country. Rogán has headed Orbán's office since 2015 and oversees various government departments, including IT services and domestic intelligence. The Hungarian Foreign Minister Péter Szijjártó called the sanctions "personal revenge" by the outgoing US ambassador.
https://www.politico.eu/article/antal-rogan-viktor-orban-hingary-us-treasury-sanctions-key-minister/US-China relations have become increasingly tense ahead of Donald Trump's inauguration as US President. On Tuesday, Chinese Vice-Premier He Lifeng and US Treasury Secretary Janet Yellen engaged in a virtual discussion to address bilateral concerns through a communication mechanism established last year. The talks were described as "candid" and "constructive", with both sides expressing their appreciation for the mechanism's role in stabilizing relations. The discussions touched on issues such as China's non-market policies, industrial overcapacity, cyber activity, and Beijing's stance on US investigations. Trump had previously stated that he believed he would get along with Chinese President Xi Jinping, despite sparking controversy by vowing to maintain tariffs on Chinese firms.
https://www.scmp.com/economy/global-economy/article/3293775/us-china-dialogue-touches-candid-concerns-trump-takes-office?module=top_story&pgtype=section#commentsThe US Treasury has imposed sanctions on Antal Rogan, a senior Hungarian government official and close aide to Prime Minister Viktor Orban. The Treasury accused Rogan of using his position to gain financial advantages for himself and his associates. Rogan oversees the secret services of Hungary, a NATO ally, and has been close to Orban for decades, having managed his media machine and election campaigns. The move is part of strained relations between Hungary and the US under President Joe Biden's administration, which have been exacerbated by Budapest's ties with Moscow despite the war in Ukraine.
https://www.firstpost.com/world/us-imposes-sanctions-on-hungarian-pm-orbans-aide-for-suspected-corruption-13850795.htmlThe US Treasury has imposed sanctions on Sudanese paramilitary leader Gen. Mohammad Hamdan Daglo Mousa and several related companies, as part of an effort to hold accountable those responsible for atrocities committed in the Darfur region. The move follows a determination by the US that the violence in Darfur constitutes genocide, with allegations including mass rape of civilians. The sanctions target specific individuals and entities involved in the violence, including paramilitary weapons supplier Abu Dharr Abdul Nabi Habiballa Ahmmed.
https://www.upi.com/Top_News/US/2025/01/08/Blinken-Sudan-genocide/6261736314672/The US Treasury Department has taken steps to ease sanctions on Syria, allowing for essential services such as electricity and water provision to continue uninterrupted. This move is part of a broader effort to support humanitarian assistance and responsible governance in the country during its transition period following the end of Bashar Al Assad's rule. Deputy Treasury Secretary Wally Adeyemo stated that this opportunity allows Syria to rebuild, but emphasized that sanctions on individuals such as Assad and his supporters remain in place. The Treasury Department clarified that it has not unblocked any property or interests of those currently on its sanctions blacklist, including the Syrian central bank and Hayat Tahrir Al Sham.
https://www.khaleejtimes.com/world/us-temporarily-eases-some-syria-sanctionsThe US has eased some restrictions on Syria's transitional government, allowing the entry of humanitarian aid after Islamist insurgents ousted Syrian leader Bashar Assad last month. The US Treasury Department issued a six-month general license permitting certain transactions with the Syrian government, including energy sales and incidental transactions. This move indicates limited US support for the new transitional government and aims to ensure that sanctions do not hinder basic human needs such as public services or humanitarian assistance.
https://krcgtv.com/news/nation-world/us-eases-restrictions-on-syria-while-keeping-sanctions-in-place#A recent report suggests that US President Donald Trump's trade policies may not be as severe as initially feared, with early talks indicating a potential restriction on tariffs for specific goods whose supply chains the administration wants to bring back to the United States. This development has led to a rally in risk assets and a decline in the dollar and Treasury yields, according to Schamotta, although he notes that downside risks remain and there is no clear endpoint for this situation.
https://nypost.com/2025/01/06/business/trump-denies-fake-news-washington-post-report-that-he-will-scale-back-tariff-plan/