Your Morning Fix

• President Ferdinand R. Marcos Jr. said the government may reintroduce fuel subsidies for the most affected groups if rising tensions in the Middle East cause oil prices to surge, as was done during the pandemic.
• Philippine vehicle sales dropped by 1.2% in May to 39,775 units, mainly due to a sharp decline in passenger car sales, according to a joint CAMPI and TMA report.
• Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr. said the peso’s recent 2% decline is due to global demand for the US dollar as a safe haven, making currency market intervention ineffective.
• The US Federal Reserve kept interest rates unchanged and hinted at possible cuts in 2025, though Fed Chair Jerome Powell warned that inflation may rise significantly as import tariffs push consumer prices higher.
• Indonesia’s central bank held off on further rate cuts but encouraged banks to lower lending rates and expand credit, with economists anticipating continued gradual easing due to external economic challenges.