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White House says Iran would be 'wise' to make deal, as US ramps up military presence
The White House has warned Iran would be "very wise" to make a deal with the US, amid reports that President Donald Trump is weighing fresh military action against the Islamic Republic. Press secretary Karoline Leavitt told a news briefing that Trump was still hoping for a diplomatic resolution over Tehran's nuclear programme. Her comments come as the US moves a second battleship into the region, and a day after progress was reported at US-Iran talks in Switzerland. US media reported on Wednesday that Trump had discussed attack options with advisers, and that a US strike could take place as early as Saturday. ... (full story)
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TRUMP: TALKS WITH IRAN ARE GOING WELL TRUMP: HAVE TO DO A MEANINGFUL DEAL WITH IRAN *TRUMP: WILL FIND OUT OVER MAYBE 10 DAYS ABOUT PEACE IN MIDEAST TRUMP: WE MAY HAVE TO TAKE IT A STEP FURTHER ON IRAN TRUMP: THEY CAN'T HAVE A NUCLEAR WEAPON *TRUMP: TIME FOR IRAN TO JOIN US ON A PATH TO COMPLETE EFFORTS
TRUMP: WILL GET A DEAL ON IRAN ONE WAY OR THE OTHER Trump: Really bad things will happen if there is no Iran deal.
The manager turned first to an overview of broad market developments during the intermeeting period. Respondents to the Open Market Desk Survey of Market Expectations (Desk survey) continued to see the economy as resilient and again marked up their forecasts for real gross domestic product (GDP) growth in 2026, while their expectations for headline personal consumption expenditures (PCE) inflation and the unemployment rate were little changed. Market- and survey-based policy rate expectations were likewise little changed. Market-based measures of policy rate expectations indicated one to two 25 basis point rate cuts this year, and the median modal path of the federal funds rate, as given in the Desk survey, continued to indicate expectations of two 25 basis point rate cuts this year. The manager turned next to Treasury market developments and market-based measures of inflation compensation. Shorter-term Treasury yields were little changed, while longer-term yields rose a few basis points on net; the Treasury curve steepened slightly as a result. Near-term inflation compensation continued to decline amid lower-than-expected consumer price index (CPI) readings, lower energy prices, and lower-than-anticipated pass-through of tariffs to customers; forward rates suggested that near-term inflation would stabilize close to current levels for the rest of the year. Model-based measures of short-term inflation expectations also declined some over the intermeeting period, with forward rates suggesting further modest declines over the course of this year. The Treasury market continued to function well amid low volatility. In light of the growing portion of Treasury securities that is financed using repos, the manager noted the importance of the stability of the repo market for the continued smooth functioning of the Treasury market. The recent announcement that Fannie Mae and Freddie Mac may increase their mortgage investment portfolios garnered substantial market attention and was followed by a notable decline in mortgage-backed securities yields relative to those on comparable-maturity Treasury yields. Still, the manager observed that the decline was unlikely to result in a material increase in mortgage refinancing because current mortgage rates are well above the weighted average rate of outstanding mortgages. The manager moved to a discussion o *FED: SEVERAL WOULD'VE SUPPORTED TWO-SIDED LANGUAGE ON RATE PATH *FED: SEVERAL SAW MORE CUTS IF INFLATION DECLINES AS EXPECTED *FED: MOST CAUTIONED DISINFLATION COULD BE SLOWER THAN EXPECTED Fed Minutes: Most participants cautioned that progress toward 2% target might be slower and more uneven than generally expected and judged risk of inflation running persistently above target was meaningful. Fed commenting on yen "rate check" on behalf of the BOJ "In the days leading up to the meeting, the dollar had depreciated markedly after reports that the Desk had made requests for indicative quotes, known as "rate checks," on the dollaryen exchange rate. The manager noted