U.S. Federal Reserve Vice Chair Philip Jefferson expressed “cautious optimism” about the outlook for the U.S. economy and stated that strong productivity growth could help return inflation to the central bank’s 2 percent target. He predicted that the disinflationary trend would resume later this year, after the full impact of increased tariffs is reflected in prices. Jefferson also emphasized that the Federal Reserve’s current monetary policy stance is well positioned to respond to economic developments.

U.S. President Donald Trump signed an executive order creating the legal framework for imposing tariffs on goods from countries that trade with Iran. However, these tariffs have not yet been applied immediately or automatically. Under this order, officials from the U.S. Departments of State and Commerce must identify the countries concerned and determine the level of additional tariffs, cited for example at 25 percent. This threat could disrupt U.S. trade relations with countries such as India, Turkey, and China.

Iran described the recent nuclear talks with the United States as “a step forward” and emphasized that dialogue has always been Tehran’s strategy for resolving disputes peacefully. At the same time, Tehran stated that it will not retreat from its right to enrich uranium domestically and once again stressed that it is not seeking nuclear weapons, even as talks continue under the shadow of US military threats and new sanctions. Market reactions to the negotiations have been mixed, with markets showing limited optimism. Iran’s stock market fell by 90,000 points in the first half of today’s session.

Japan’s stock market saw an exceptional rally following the decisive election victory of Sanae Takaichi. The Nikkei 225 rose by about 5.7 percent to a new all time high, while the Topix index also climbed to a fresh peak. Markets expect the new government to pursue expansionary fiscal policies and higher public spending in areas such as artificial intelligence, semiconductors, defense industries, and machinery. Shares of companies linked to these sectors, especially chip equipment makers and defense firms, recorded the strongest gains.