The latest minutes from the Federal Reserve's September meeting suggest policymakers are leaning toward further rate cuts this year. While most officials backed the quarter-point reduction, the discussion reflected growing concern about labour market risks and a more balanced inflation outlook. The tone overall was cautious but pointed to a continued easing bias. Most participants judged it would likely be appropriate to ease policy further over the remainder of 2025. Some participants noted financial conditions suggested policy may not be particularly restrictive. Those participants...
Federal Reserve Governor Stephen Miran said interest rates are too high and proposed aggressive cuts in the coming months to protect the labor market. In his first policy speech since being sworn in as governor last week, Miran outlined the reasons why the neutral interest rate—where the policy rate neither stimulates nor burdens the economy—has fallen. That rate, which was likely overestimated in the past, has also been lowered recently by tariffs, immigration restrictions, and tax policy, Miran said. This means interest rates should be much lower to prevent economic damage, he...
The Federal Reserve's interest rate cut last week was not as dovish as some market participants seem to have expected, according to analysts at Yardeni Research. But in a note to clients, the analysts said that "relatively muted" gains in stocks after the Fed's decision was an indication that the move had already been priced in by markets. The Fed lowered its benchmark federal funds rate by 25 basis points to a target range of 4.00% to 4.25% last Wednesday, delivering its first rate reduction since December. Updated projections released after the meeting showed a majority of policymakers...
Reserve Bank of Australia (RBA) Governor Michele Bullock said that economic data since the August meeting has been slightly better than expected. Although inflation has fallen significantly and the labor market is approaching full capacity, Bullock emphasized that the bank will continue to monitor upcoming economic data. "We've made real progress in lowering inflation, but our job is to ensure it remains within the target range for a sustained period," she said.Bullock also noted that although labor market conditions have eased slightly, with a slight increase in the unemployment rate,...
The Bank of Japan (BoJ) announced on Friday that the board members decided to leave the short-term interest rate target unchanged in the range of 0.4%- 0.5% after concluding its two-day monetary policy review meeting. The decision matched the market expectations. The Japanese central bank maintained the pause in its rate-hiking cycle for the fourth consecutive meeting, following a 25 basis points (bps) hike in January. Source: FXstreet
The U.S. Federal Reserve on Wednesday stateside cut interest rates by a quarter point, bringing the overnight funds rate range between 4% and 4.25%. That move was fully priced in markets so traders got what they expected. It was a near-unanimous decision by the Fed. Only Stephen Miran, picked by U.S. President Donald Trump and confirmed to the Fed board just on Monday, dissented and voted for a half-point cut. Prior to the meeting, there was chatter that governors Michelle Bowman and Christopher Waller both of whom were also appointed by Trump might advocate for a larger cut. While Fed...
President Donald Trump said he would fire Lisa Cook from the Federal Reserve's Board of Governors if she does not resign her post over mortgage-fraud accusations from a top...
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...