FX.co ★ Copper Pulls Back on Global Growth Worries

Copper futures decreased to below $4.60 per pound on Thursday, pulling back from recent two-week highs. This decline was driven by revived concerns of a global economic slowdown instigated by tariffs, which negatively influenced market sentiment. The uncertainty was amplified by a statement from the White House, suggesting that certain Chinese products might be subjected to tariffs as high as 245%. These tariffs include both current ones and additional proposed levies stemming from efforts dating back to the first term of President Trump. While China has shown a willingness to re-engage in trade discussions, it requires greater respect, clearer policy directions, and the appointment of a U.S. negotiator empowered by President Trump for any progress. Concurrently, Federal Reserve Chair Jerome Powell cautioned that tariffs could worsen inflation and potentially slow down economic growth, posing challenges to the Fed's dual objectives. Powell further emphasized that the Federal Reserve is not hasty in reducing interest rates and prefers to await more definitive information before implementing any policy modifications.