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...
Bets that the U.S. Federal Reserve will cut interest rates in September have dropped significantly over the past week, as markets prepare for Fed Chair Jerome Powell's speech at Jackson Hole on Friday. Last week, traders were pricing in a 99 percent chance of a 25 bps rate cut at the next Fed meeting. That is now down to 71.5 percent, according to Investing.com's Fed Rate Monitor Tool. The drop comes amid hotter-than-expected producer inflation data and some hawkish commentary from some Fed members. After a modest 0.3% July CPI number last Tuesday, last Thursday's red-hot monthly PPI of...
The Fed held rates steady at 4.25%–4.50% for a fifth straight meeting, as expected, but two governors dissented in favor of a cut the first such dual dissent since 1993. Policymakers observed that, while fluctuations in net exports continue to influence the data, recent indicators point to a moderation in economic activity in H1 contrasting with earlier assessments that growth was proceeding 'at a solid pace'. The Fed also said that the unemployment rate remains low while inflation remains somewhat elevated, and uncertainty about the economic outlook persists. The Fed reinforced that...
According to the FOMC Minutes, the two Federal Reserve policymakers who disagreed with the central bank's decision to keep interest rates the same last month were not joined by other policymakers in calling for lower rates at that meeting. Key Quotes Almost all participants at the Fed's July 29–30 meeting viewed it as appropriate to maintain the benchmark interest rate in the 4.25%–4.50% range. Participants noted it would take time to have more clarity on the magnitude and persistence of higher tariffs' effects on inflation. Participants assessed the impact of tariffs had become more...
In a post published on Truth Social on Wednesday (August 20th), US President Donald Trump urged Federal Reserve Governor Lisa Cook to resign, linking to a Bloomberg article titled "Trump Allies Urge Bondi to Investigate Fed's Cook Over Mortgages." "The Director of the Federal Housing Finance Agency (FHA) is urging Attorney General Pam Bondi to investigate Federal Reserve Governor Lisa Cook over two mortgages. This is the latest in a series of steps by the Trump administration to increase legal scrutiny of Democratic figures and officials." (alg) Source: FXstreet
The US Federal Reserve's decision last month to keep interest rates unchanged sparked a dissenting opinion from two leading central bankers who wanted to lower rates to prevent further labor market weakness. The outcome of the two-day meeting on Wednesday could indicate whether their concerns are being shared by other policymakers, potentially reinforcing expectations that borrowing cost reductions could begin next month. Even less than 48 hours after the conclusion of the Federal Open Market Committee (FOMC) meeting on July 29-30, data from the Labor Department appeared to confirm the...
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...