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 dollar index dropped below 106 on Friday, on track to lose about 1.5% for the week, marking its first weekly decline in nine weeks. The initial pullback was sparked by the nomination of Scott Bessent as US Treasury Secretary, which provided markets with a sense of stability and eased concerns over drastic policy shifts under the incoming Trump administration. The decline gained momentum on Wednesday after US PCE inflation data met expectations, signaling little change in the Federal Reserve's stance on interest rate cuts. Markets are now pricing in a 66.5% chance of a 25 basis point...
The Japanese yen jumped 1% to around 150 per dollar on Friday, hitting a six-week high as investors reacted to data showing Tokyo inflation rose above 2% in November. The inflation data reinforced expectations for another interest rate hike from the Bank of Japan in December. Markets now price in about a 60% chance of a 25 basis point rate hike next month, up from about 50% a week ago. Tokyo's inflation figures are often seen as a leading indicator of national price trends, with national CPI data usually following in about three weeks. However, national CPI for November will not be...
The Australian dollar (AUD) continued its uptrend for the third straight session on Friday following aggressive comments from Reserve Bank of Australia (RBA) Governor Michele Bullock. However, the AUD/USD pair may face downward pressure as the United States (US) is set to announce additional measures on Monday aimed at curbing China's ability to advance artificial intelligence technology. RBA Governor Bullock said on Thursday that Australia's core inflation is still "too high" to consider cutting interest rates anytime soon. He stressed that there is still progress to be made before...
The USD/JPY pair lost traction around 150.95 during the early Asian session on Friday (11/29). The Japanese yen (JPY) moved higher after Japan's Tokyo Consumer Price Index (CPI) inflation report came in higher than expected for November. Data released by the Statistics Bureau of Japan on Friday showed that the Tokyo Consumer Price Index (CPI) rose by 2.6% YoY in November, compared to 1.8% in the previous month. Meanwhile, the Tokyo CPI ex Fresh Food, Energy rose by 2.2% YoY in November compared to 1.8% previously. The Tokyo CPI ex Fresh Food increased by 2.2% YoY in November, compared to a...
Gold was steady amid thin trading due to the U.S. Thanksgiving holiday, with investors weighing the prospect of a Federal Reserve interest rate cut and rising tensions in Ukraine. Bullion was trading near $2,640 an ounce on Friday and down about 3% for the week after a ceasefire between Israel and Hezbollah reduced some demand for the safe-haven asset. Swap markets are pricing in a more than 60% chance the Fed will ease borrowing costs again next month The market is also monitoring fresh threats from Russia, after President Vladimir Putin warned on Thursday that his forces could strike...
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...