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 Chairman Jerome Powell is set to speak at the annual central bank symposium this week amid growing bets that a rate cut is nearly guaranteed next month. But Powell may defy expectations, refusing to cave as the final battle against inflation looms large, Scotiabank (TSX:BNS) Economics warned in a recent note. "The Fed has not won the last inflation battle given recent PPI and CPI readings and the requirement to have much more data given factors like residual seasonality and sampling deficiencies," Scotiabank said. The annual Jackson Hole gathering kicks off with informal...
Federal Reserve Chair Jerome Powell will give a speech on the economic outlook and the Fed's review of its policy framework next Friday at the Kansas City Fed's annual central banking conference in Jackson Hole, Wyoming, the Fed said on Thursday. Powell's speech comes as data showing some impact of tariffs on inflation but the job market is also slowing, a combination fueling expectations for the Fed to cut interest rates by a quarter of a percent when it meets next month. U.S. President Donald Trump wants lower rates and is looking for a replacement for Powell, whose term ends in...
A 50-basis point interest rate cut next month could potentially send the wrong signal to markets about the state of the U.S. labor market, San Francisco Federal Reserve President Mary Daly told the Wall Street Journal. A soft July jobs report, as well as muted inflation data for the month, have fueled increased expectations that the Fed will slash borrowing costs at its September meeting. It would be the first drawdown by the central bank since it paused its policy easing cycle last December. Investors are now all but pricing in a 25-basis point reduction after the Fed's September 16-17...
U.S. Treasury Secretary Scott Bessent said Wednesday that short-term interest rates should be 1.5 to 1.75 percentage points lower than current levels, urging the Fed to begin a series of cuts starting with a 50bps reduction in September. Speaking to Bloomberg News television network, he said, "We should probably be 150, 175 lower. I think the committee needs to step back." The Fed's benchmark rate has been at an effective 4.33% since January, after three cuts late last year, as it monitors the economic impact of tariffs. President Trump has also pushed for cuts since early this year,...
Traders are now pricing in a 99% probability of a 25-bps interest rate cut at the September 17, 2025, Federal Reserve meeting, according to Investing.com's Fed Rate Monitor Tool. This is up from yesterday's probability of 91.4%. Further, traders now see a 1.4% probability of a 50-basis point cut at the upcoming meeting. Previously, there was zero chance of such an outcome. The current federal funds rate is at 4-1/4 to 4-1/2 percent. President Donald Trump and his administration have been pressing Fed Chair Jerome Powell for a cut for months, saying the high rates are costing 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...