Stephen Miran, a Federal Reserve governor whose term ends at the end of January, said Thursday that he is looking for 150 basis points of interest-rate cuts this year to boost the U.S. labor market. Miran told Bloomberg Television's Surveillance program that Fed officials had room to further reduce rates given his view that underlying inflation was likely running at 2.3%. "I'm looking for about a point and a half of cuts. A lot of that is driven by my view of inflation," Miran said. "Underlying inflation is running within noise of our target, and that's a good indication of where overall...
Gold steadied, after three days of losses underpinned by fading expectations of a US interest rate cut next month. Bullion was holding above $4,000 an ounce on Tuesday. With traders and policymakers still awaiting a backlog of data after the longest US government shutdown in history, several Federal Reserve officials have cautioned against another reduction in the cost of borrowing. Interest-rate swaps now imply a less-than-50% likelihood of a December rate cut after all but pricing in a quarter-point reduction less than a month ago. Lower interest rates typically make non-yielding bullion...
Oil steadied as investors weighed the impact from an emerging surplus against US sanctions on Russia that have upended some crude flows. West Texas Intermediate traded below $60 a barrel after a modest loss in the previous session. Brent closed near $64. The price of Russia's flagship crude has plunged to the lowest level in more than two years, just days before US sanctions hit major producers Rosneft PJSC and Lukoil PJSC. Oil futures are down this year as expectations for a global glut weigh on the outlook, with the International Energy Agency forecasting a record...
Oil prices are expected to decline through 2026, Goldman Sachs said on Monday, citing a production surge that will keep the market in a large surplus of around 2 million barrels per day. The bank forecast Brent crude will average $56 a barrel and WTI $52 in 2026, below current forward curves of $63 and $60. "The 2025-2026 supply wave mostly results from long-cycle projects that saw Final Investment Decisions (FIDs) just before the pandemic, got delayed during Covid, and are now all coming online and from OPEC's strategic decision to unwind production cuts," the bank noted. OPEC+, or the...
Gold prices fell more than 1% on Monday, pressured by a stronger dollar and diminishing expectations of a US interest rate cut next month, as investors awaited delayed economic data this week that could provide clues about the Federal Reserve's policy direction. At the time of writing, XAU/USD was trading at $4,030, weakening throughout the trading session due to the stronger dollar and hawkish comments from Federal Reserve officials. Therefore, currency markets have priced in less than a 50% chance of a 25 basis point (bps) interest rate cut at the December meeting. As a result, the US...
Oil reversed earlier losses as signs that activity had resumed at a key Russian port were countered by wider geopolitical risks to prices. Brent was marginally higher above $64 a barrel, after adding more than 2% on Friday following an attack on Russia's Novorossiysk facility. Two tankers moored on Sunday at the port, indicating operational activity. The attack on Novorossiysk, along with Iran's seizure of an oil tanker near the Strait of Hormuz, injected a fresh geopolitical premium into prices as the market faces pressure from an emerging global surplus. Traders are also...
Bank of Japan (BOJ) Governor Kazuo Ueda stated that achieving 2% inflation is getting closer, although real inflation remains low. Ueda emphasized that the BOJ will continue to raise interest rates...
The Reserve Bank of Australia (RBA) maintained its cash rate at 4.1% during its April meeting, holding borrowing costs unchanged after slashing 25 bps in the February meeting, aligning with market...