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...
The US dollar strengthened in thin holiday-affected trading on Tuesday, maintaining recent strength as traders brace for fewer Federal Reserve interest rate cuts in 2025. At 4:25 AM ET (09:25 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was trading 0.1% higher at 107.905, near a recent two-year high. The dollar has been in demand since the Federal Reserve outlined a hawkish outlook for interest rates after its final policy meeting of the year last week, projecting just two rate cuts of 25 basis points in 2025. In fact, markets are now...
Gold (XAU/USD) prices struggled to capitalize on their modest intraday gains on Tuesday and remained below multi-day highs set the previous day amid mixed fundamental cues. Geopolitical risks stemming from the prolonged Russia-Ukraine war and tensions in the Middle East, along with trade war concerns, continued to lend support to the safe-haven precious metal. However, the Federal Reserve's (Fed) hawkish policy shift kept a lid on the commodity. The US central bank last week signaled it would slow the pace of interest rate cuts in 2025. The outlook remains supportive of a pickup in the US...
Oil prices rose on Tuesday, reversing the previous session's losses, supported by a slightly positive near-term market outlook, despite thin trading ahead of the Christmas holiday. Brent crude futures rose 42 cents, or 0.6%, to settle at $73.05 a barrel, and U.S. West Texas Intermediate crude rose 38 cents, or 0.6%, to settle at $69.62 a barrel by 0742 GMT. Changes in supply and demand in December have supported their less bearish outlook so far, analysts said in a note. A plan by China, the world's biggest oil importer, to issue 3 trillion yuan ($411 billion) worth of special bonds next...
The USD/CHF pair posted modest gains near 0.8990 during the early European session on Tuesday.The prospect of higher US interest rates in the longer term continues to support the greenback for now. Trading volumes are likely to thin out as the year-end approaches. The Federal Reserve (Fed) projections outlined a slower pace of interest rate cuts than traders had expected, supporting the US Dollar (USD). The Summary of Economic Projections, or ‘dot-plot', indicated a half-percentage-point rate cut in 2025, compared to a full percentage point cut projected in September. Data released by the...
The Australian Dollar (AUD) weakened for the second straight day against the US Dollar (USD) on Tuesday following the release of the Reserve Bank of Australia (RBA) December monetary policy meeting minutes. Trading activity is expected to be subdued ahead of the Christmas break. The RBA minutes indicated that the board had become more confident about inflation since the previous meeting, although risks remained. The board stressed the need for monetary policy to remain "moderately tight" until there was greater certainty about inflation. The RBA board also noted that if future data were in...
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...