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...
Bank of England (BoE) Monetary Policy Committee (MPC) member and Deputy Governor for Financial Stability, Sarah Breeden, stated on Tuesday that she believes the recent "bump" in inflation won't lead to further, long-term inflationary pressures. However, Breeden warned that consumer-level inflation expectations have risen dramatically, and is a cause for concern.The recent "hump" in inflation is unlikely to lead to additional inflationary pressure. Underlying disinflationary process looks to be on track but policymakers face a balancing act. Significant rise in household inflation...
In a statement after the September policy meeting, the Reserve Bank of Australia said: "With signs that private demand is recovering, indications that inflation may be persistent in some areas and labour market conditions overall remaining stable, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting. Financial conditions have eased since the beginning of the year and this seems to be having some impact, but it will take some time to see the full effects of earlier cash rate reductions. The Board judged that it was appropriate to remain...
Federal Reserve (Fed Bank of New York President John C. Williams hit the newswires on Monday, expressing his general cautiousness toward further interest rate cuts but acknowledging that current Fed rate policy is tilted more toward the restrictive side at a time when the clear risk to underlying economic data appears to be heavier toward labor market weakness. Monetary policy continues to be restrictive, we're still in a position to put downward pressure on inflation.We still have a ways to go to get to 2% inflation goal.The Fed has a balancing act, underlying inflation moderating.The Fed...
Federal Reserve Chairman Jerome Powell said the outlook for the labor market and inflation faces risks, reiterating his view that policymakers will likely face a difficult road as they consider further interest rate cuts. "Near-term risks to inflation are tilted to the upside and risks to employment are tilted to the downside—a challenging situation," Powell said Tuesday in prepared remarks for an event at the Greater Providence Chamber of Commerce in Rhode Island. "These two-sided risks mean there's no risk-free path." Powell offered no indication whether he would support a rate cut at...
The Federal Reserve's interest rate decision last week was not as "dovish" as it first seemed, analysts at Barclays have argued. Along with a 25-basis point reduction to the Fed's target range for rates to 4% to 4.25%, the meeting included fresh projections which showed that officials are anticipating another half percentage point in rate cuts to help stem a downturn in the labor market. However, seven of the 19 estimates provided by policymakers in their closely-watched "dot plot" of forecasts saw fewer reductions this year, with one even calling for rates to have stayed at their prior...
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...