SMM

April 17, 2025 SMM Tin Morning News: The US Fed has made it clear that it will not cut interest rates for the time being. Previously, when US stocks plummeted, Trump repeatedly hoped that the US Fed would cut interest rates, but the latest speech by Fed Chairman Powell poured cold water on the market. Powell once again emphasized that the US Fed will focus on preventing tariff-driven price increases from evolving into more persistent inflation. This statement reinforced the signals Powell has repeatedly highlighted: the US Fed is in no rush to adjust the benchmark policy rate. Powell issued a strong warning that day about the inflationary effects of US President Trump's trade policies. He stated that Trump's tariffs are "very likely" to stimulate a temporary rise in inflation and warned that these effects could persist for a long time. Powell said that the US faces a highly uncertain outlook, with significant risks of rising unemployment and inflation. The US Fed will assess the potential impacts of changes in government policies, observe economic behavior, and formulate monetary policy in a way that best achieves the Fed's mission objectives. Powell noted that it is difficult to evaluate the potential economic impacts of tariff increases until there is greater certainty. However, the magnitude of the tariff hikes is clearly far beyond expectations, and the economic impacts may be as well, including rising inflation and slowing economic growth. The scale and duration of these effects remain uncertain. Powell said that adjusting monetary policy on tariffs is "premature." Spot market: The spot market remained active yesterday. Most traders reported that yesterday's transactions were maintained at around two trucks, with downstream and end-user customers showing a high willingness to inquire, and most companies are still conducting some restocking. On the smelter side, most smelters have a low willingness to sell, still maintaining high listed prices.