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 Christopher Waller said on Thursday he continues to believe the U.S. central bank should cut interest rates at the end of this month amid mounting risks to the economy and the strong likelihood that tariff-induced inflation will not drive a persistent rise in price pressures. "It makes sense to cut the FOMC's policy rate by 25 basis points two weeks from now," Waller told a gathering of the Money Marketeers of New York University. "I see the hard and soft data on economic activity and the labor market as consistent: The economy is still growing, but its momentum...
The emerging divide among Federal Reserve officials over the outlook for interest rates is being driven largely by differing expectations for how tariffs might affect inflation, a record of policymakers' most recent meeting showed. "While a few participants noted that tariffs would lead to a one-time increase in prices and would not affect longer-term inflation expectations, most participants noted the risk that tariffs could have more persistent effects on inflation," the minutes of the Federal Open Market Committee's June 17-18 meeting said. New rate projections released...
U.S. Federal Reserve Chair Jerome Powell resumed two days of congressional testimony on Wednesday, appearing before the Senate Banking Committee after scrutiny before a House panel the day before that focused on the Fed's concerns that the Trump administration's tariff plans will raise inflation. Powell's prepared testimony submitted to the Senate was the same as that delivered to the House Financial Services Committee, the Fed said as the Senate hearing began. Even with recent inflation more moderate than expected, the central bank expects rising import taxes will lead to higher inflation...
The Bank of England kept its key interest rate on hold at 4.25% during its Thursday meeting, with economists expecting the central bank to wait until August before it cuts again. Six out of nine of the BOE's monetary policy committee opted to hold rates with three opting for a 25-basis-points cut. "Underlying UK GDP [gross domestic product] growth appears to have remained weak, and the labour market has continued to loosen, leading to clearer signs that a margin of slack has opened up over time," the central bank said in a statement. "Measures of pay growth have continued to moderate and,...
The Swiss National Bank (SNB) cut its policy rate by 25 bps to 0% in June 2025, as expected, setting borrowing costs at zero for the first time since negative rates in late 2022. The move came amid easing inflationary pressures and a weakening global economic outlook. Consumer prices in Switzerland fell by 0.1% in May, marking the first decline in four years, mainly driven by lower prices in tourism and oil products. The SNB now projects average inflation at 0.2% for 2025, 0.5% for 2026, and 0.7% for 2027. Swiss GDP also posted strong growth in the first quarter of 2025, partly supported...
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...