Asian stocks gained on Monday, tracking a rally on wall street on bets the federal reserve will cut rates next month. That comes after fed boss Jerome Powell indicated a tilt to support the economy at Jackson hole on Friday.


Asian markets advance, tracking wall street’s rally on Friday 

Christine Lagarde, president of the European central bank, has issued a clear warning about the risks to the US Economy if the federal reserve’s independence is undermined.


ECB chief flags instability if FED independence is undermined 

US President Donald Trump has upped his campaign on the federal reserve. The latest is trump's call for fed governor Lisa cook to resign on mortgage fraud allegations. Trump's latest attack comes days ahead of fed boss Jerome Powell's last stand at Jackson hole. In response, fed's cook said she won't be bullied into stepping down.


Trump calls on Fed governor Lisa Cook to resign 

The great-and-the-good of the American central banking world are off to the fed's annual Jackson hole conference. For fed chair Jerome Powell, his appearance could hardly come at a more challenging moment. 


FED's Jerome Powell's dilemma: to cut or not 

The Federal Reserve's recent meeting minutes revealed an increasing focus on long-term inflation expectations, with officials expressing concern that tariffs may trigger more persistent inflation compared to what was initially anticipated.The minutes, which were released on May 28, underscore the delicate balancing act that the Fed faces as it navigates the evolving economic landscape, particularly with respect to inflation pressures and uncertain growth prospects.A primary point of discussion among Fed officials was the rising expectations for inflation over the next five to 10 years, driven in large part by the imposition of tariffs. According to the minutes, “almost all” participants noted the risk that inflation could prove more persistent than expected, signalling that inflationary pressures might remain stubbornly high even in the face of efforts to stabilise prices.The Federal Reserve has been closely monitoring inflation as part of its broader strategy to maintain price stability. Typically, the central bank aims to keep inflation expectations well-anchored, believing that if consumers and businesses expect inflation to remain stable, it can help moderate actual price increases. However, the surge in long-term inflation expectations, as reflected by a University of Michigan survey, has raised concerns among Fed officials about the potential for longer-lasting inflationary pressures.Despite these concerns, Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable. These market indicators, including Treasury Inflation-Protected Securities (TIPS) and inflation swaps, have not shown a significant uptick in expectations of runaway inflation. The central bank has repeatedly stressed that it is focused on long-term, rather than short-term, inflation trends.The minutes also acknowledged that if inflationary pressures persist, the Federal Reserve might face a difficult setet of trade-offs in managing the economy. “Participants noted that the committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken,” the minutes stated. This reflects an increasing sense of uncertainty among policymakers about the future trajectory of both inflation and economic growth. The Fed’s ability to keep inflation under control while fostering continued economic growth and low unemployment will likely be tested in the coming months.The ongoing uncertainty surrounding the impact of government policies, particularly tariffs, on the economy was also highlighted in the minutes. The Fed officials noted that the "ultimate extent of changes to government policy and their effects on the economy were highly uncertain," a recognition that the administration's trade policies could introduce new challenges to the central bank’s ability to manage inflation.&nbsp;Uncertain future&nbsp;The uncertainty surrounding the future of inflation and government policies has already begun to influence market behaviour. Investors and economists have been closely watching signals from the Federal Reserve about its future actions, particularly regarding interest rates and monetary policy. The rise in inflation expectations, coupled with concerns over slower economic growth, could lead to more cautious decisions on the part of both the Fed and market participants.The Federal Reserve’s minutes point to a complex economic environment, one where inflation expectations are rising due to tariffs and other factors, yet growth and employment remain uncertain. While Fed officials have reassured markets that inflation expectations remain well-anchored in the long run, they also acknowledged the potential risks if these expectations continue to climb, particularly if inflationary pressures become entrenched. As the central bank faces these challenges, it will be required to balance the need for price stability with the broader economic goals of fostering growth and low unemployment.

Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable.

The Federal Reserve's recent meeting minutes revealed an increasing focus on long-term inflation expectations, with officials expressing concern that tariffs may trigger more persistent inflation compared to what was initially anticipated. The minutes, which were released on May 28, underscore the delicate balancing act that the Fed faces as it navigates the evolving economic landscape, particularly with respect to inflation pressures and uncertain growth prospects. A primary point of discussion among Fed officials was the rising expectations for inflation over the next five to 10 years, driven in large part by the imposition of tariffs. According to the minutes, “almost all” participants noted the risk that inflation could prove more persistent than expected, signalling that inflationary pressures might remain stubbornly high even in the face of efforts to stabilise prices. The Federal Reserve has been closely monitoring inflation as part of its broader strategy to maintain price stability. Typically, the central bank aims to keep inflation expectations well-anchored, believing that if consumers and businesses expect inflation to remain stable, it can help moderate actual price increases. However, the surge in long-term inflation expectations, as reflected by a University of Michigan survey, has raised concerns among Fed officials about the potential for longer-lasting inflationary pressures. Despite these concerns, Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable. These market indicators, including Treasury Inflation-Protected Securities (TIPS) and inflation swaps, have not shown a significant uptick in expectations of runaway inflation. The central bank has repeatedly stressed that it is focused on long-term, rather than short-term, inflation trends. The minutes also acknowledged that if inflationary pressures persist, the Federal Reserve might face a difficult setet of trade-offs in managing the economy. “Participants noted that the committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken,” the minutes stated. This reflects an increasing sense of uncertainty among policymakers about the future trajectory of both inflation and economic growth. The Fed’s ability to keep inflation under control while fostering continued economic growth and low unemployment will likely be tested in the coming months. The ongoing uncertainty surrounding the impact of government policies, particularly tariffs, on the economy was also highlighted in the minutes. The Fed officials noted that the "ultimate extent of changes to government policy and their effects on the economy were highly uncertain," a recognition that the administration's trade policies could introduce new challenges to the central bank’s ability to manage inflation. Uncertain future The uncertainty surrounding the future of inflation and government policies has already begun to influence market behaviour. Investors and economists have been closely watching signals from the Federal Reserve about its future actions, particularly regarding interest rates and monetary policy. The rise in inflation expectations, coupled with concerns over slower economic growth, could lead to more cautious decisions on the part of both the Fed and market participants. The Federal Reserve’s minutes point to a complex economic environment, one where inflation expectations are rising due to tariffs and other factors, yet growth and employment remain uncertain. While Fed officials have reassured markets that inflation expectations remain well-anchored in the long run, they also acknowledged the potential risks if these expectations continue to climb, particularly if inflationary pressures become entrenched. As the central bank faces these challenges, it will be required to balance the need for price stability with the broader economic goals of fostering growth and low unemployment.

Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable.

Fed officials express concern over long-term inflation expectations amid tariff impact

The US President has said that the central bank should lower interest rates and that fed chair Gerome Powell's termination cannot come fast enough trump is again raising questions about whether he will seek to limit the fed's independence as new tensions flare in his contentious relationship with the central bank. Watch in for more details!

Trump's Fed Rate Demand: Trump Urges Powell To Cut Rates Amid Falling Prices

The US Federal Reserve has announced a pause in rate changes, holding its benchmark lending rate steady.
The decision, made unanimously by policymakers, comes amid growing uncertainty over US Trade policy.

US Fed Holds Rates Amid Tariff Turmoil

All eyes are on the US Federal Reserve as it prepares for a key policy announcement. Investors expect the Fed to keep rates unchanged, but markets remain tense amid global macroeconomic uncertainty and a weakening dollar. What will this mean for inflation, stocks, and currencies?

US Fed likely to keep rates unchanged on May 7

The US dollar is under pressure as investors brace for a key federal reserve decision this week. With global markets on edge and trade tensions lingering, all eyes are on what Fed Chair Jerome Powell says next&mdash;and what it could mean for the world&rsquo;s biggest assets. The stakes are massive for everyone.&nbsp;<o:p></o:p>
The US dollar started the week under pressure, with the dollar index slipping amid rising uncertainty surrounding US-China trade dynamics and growing anticipation ahead of the Federal Reserve&rsquo;s policy meeting on Wednesday.<o:p></o:p>
Despite stronger-than-expected US nonfarm payrolls data in April and elevated consumer inflation expectations, markets are closely watching for signals from the Fed about the future rate path.<o:p></o:p>
<h2 class="MsoNormal">How will the Fed trigger markets?<o:p></o:p></h2>
The Fed is widely expected to hold rates steady at 4.25 per cent &ndash; 4.50 per cent. However, investor attention is sharply focused on the tone of the policy statement and Fed Chair Jerome Powell&rsquo;s press conference.<o:p></o:p>
Markets are seeking clarity on whether the Fed will maintain its current stance or pivot in response to economic indicators and external pressures, including trade disruptions from Trump's tariffs.<o:p></o:p>
A more hawkish Fed could strengthen the dollar and pressure equities and emerging markets. In contrast, a dovish tone could support risk assets, weaken the dollar further, and bolster demand for gold and other safe-haven plays.<o:p></o:p>
Trump&rsquo;s trade rhetoric and the lack of direct communication with China&rsquo;s leadership only heighten investor anxiety. But any escalation or breakthrough could quickly shift global sentiment.<o:p></o:p>
For now, all eyes remain on the Fed. Its stance will likely set the tone for global asset performance heading into the next quarter.<o:p></o:p>
(With inputs from the agencies)<o:p></o:p>

Business & Economy: With global markets on edge and trade tensions lingering, all eyes are on what Fed Chair Jerome Powell says next—and what it could mean for the world’s biggest assets. The stakes are massive for everyone.

The US dollar is under pressure as investors brace for a key federal reserve decision this week. With global markets on edge and trade tensions lingering, all eyes are on what Fed Chair Jerome Powell says next—and what it could mean for the world’s biggest assets. The stakes are massive for everyone. The US dollar started the week under pressure, with the dollar index slipping amid rising uncertainty surrounding US-China trade dynamics and growing anticipation ahead of the Federal Reserve’s policy meeting on Wednesday. Despite stronger-than-expected US nonfarm payrolls data in April and elevated consumer inflation expectations, markets are closely watching for signals from the Fed about the future rate path. How will the Fed trigger markets? The Fed is widely expected to hold rates steady at 4.25 per cent – 4.50 per cent. However, investor attention is sharply focused on the tone of the policy statement and Fed Chair Jerome Powell’s press conference. Markets are seeking clarity on whether the Fed will maintain its current stance or pivot in response to economic indicators and external pressures, including trade disruptions from Trump's tariffs. A more hawkish Fed could strengthen the dollar and pressure equities and emerging markets. In contrast, a dovish tone could support risk assets, weaken the dollar further, and bolster demand for gold and other safe-haven plays. Trump’s trade rhetoric and the lack of direct communication with China’s leadership only heighten investor anxiety. But any escalation or breakthrough could quickly shift global sentiment. For now, all eyes remain on the Fed. Its stance will likely set the tone for global asset performance heading into the next quarter. (With inputs from the agencies)

All eyes on the Fed: Dollar wavers ahead of key rate call and trade uncertainty

Trump's top economist said on friday that the u.S. President donald trump is checking if he can fire federal reserve chair jerome powell.
That was the national economic council director kevin hassett's response to a reporter's question if firing Powell was an option.
This comes a day after trump threatened to remove jerome powell as chair of the fed and expressed his displeasure that interest rates had not been cut recently.
Powell, on the other hand, is concerned about an inflation surge from trump's economic broadsides, including the tariff wars.

Trump Studying If Firing Powell Is An Option

President Donald Trump threatened to remove Jerome Powell as chair of the Federal Reserve. Trump also expressed his displeasure that interest rates had not been cut recently. Trump, blasting the Fed chair as being too slow to lower rates, said, "I'm not happy with him. I let him know it. "

Is the US Central Bank really independent?

Federal Reserve Chair Jerome Powell has issued a cautionary warning on the impact of tariffs. Speaking on the risks posed by President Trump’s trade policies, Powell stated that tariffs could push inflation and employment further away from the Fed’s target goals.

Powell: ‘Crypto has gone mainstream, now it needs rules’

US Fed rates, US Federal Reserve, interest rates 2025, US economy, Fed decision on rates, US Fed uncertainty, Federal Reserve news, interest rates US, US financial policy, Fed rate decision, Federal Reserve update, US economic outlook, Fed interest rates 4.25%-4.50%, US central bank, Fed monetary policy, US financial markets, Federal Reserve 2025, interest rate hold, US economic uncertainty, Federal Reserve decision March 2025, US economic news

US Fed holds rates at 4.25%-4.50 pc, cites uncertainty

The upcoming week is a major one for global markets-- will the Federal Reserve hold steady or make a move on interest rates?

Fed likely to hold rates as tariff uncertainty grows

Recession risks rise ahead of Fed's policy

The first set of interest rate moves by major central banks in 2025 indicates that it will be a year in which heavyweight economies, both developed and emerging, will diverge for a period.<o:p></o:p>
2024 saw the biggest coordinated global interest rate cut since the financial crisis - almost 15 years ago as inflation reigned in. However, the current round in 2025 has begun with policymakers manoeuvring through an uncertain economic backdrop.<o:p></o:p>
Among the G10 central banks that regulate the most actively traded currencies, three of the four that met last month &mdash; Sweden, the ECB, and Canada &mdash; persisted with their rate-cutting cycles. On the other hand, Japan, which seldom increases rates, hiked them for the second time in under a year.<o:p></o:p>
<h2 class="MsoNormal">Central banks grapple with uncertainty<o:p></o:p></h2>
The US Federal Reserve and Norway's Norges Bank stayed on the sidelines, and the Bank of England has cut rates this week. The changes come Donald Trump returned to the white house with a bang, launching trade tariff salvos and plans to shred multilateralism and regulation.<o:p></o:p>
The Bank of Canada explicitly cautioned about the risks to its economy, and the Federal Reserve chief indicated the US Central Bank is in no rush to cut rates anytime soon.<o:p></o:p>
In emerging markets, three central banks cut and one raised rates in January.<o:p></o:p>
While South Africa and Indonesia chose to keep their rates unchanged, turkey reduced them by 0.25 per cent, bringing them down to an eye-watering 45 per cent. Brazil has been struggling owing to concerns about its debt load.<o:p></o:p>
At its most recent meeting, it hiked rates by one per cent and has already pencilled in another increase for March. The Reserve Bank of India cut rates for the first time since May 2020, while China's central bank kept its powder dry as it waited for the tariff hit from Washington.<o:p></o:p>
Most major central banks in the developed market, barring Japan, are expected to continue with their bias for easing policy this year. However, if Trump's trade battle turns ugly and inflationary as expected, central banks in Europe, Canada, and Australia are likely to be hit the hardest.<o:p></o:p>
The real question is: should policymakers be wary of inflationary pressures as an expected fallout from the tariff wars or should they focus on growth measures? For now, central banks are grappling with uncertainty in 2025's foggy economic landscape.<o:p></o:p>
(With inputs from the agencies)<o:p></o:p>

Business & Economy: 2024 saw the biggest coordinated global interest rate cut since the financial crisis. However, the current round in 2025 has begun with policymakers manoeuvring through an uncertain economic backdrop.

The first set of interest rate moves by major central banks in 2025 indicates that it will be a year in which heavyweight economies, both developed and emerging, will diverge for a period. 2024 saw the biggest coordinated global interest rate cut since the financial crisis - almost 15 years ago as inflation reigned in. However, the current round in 2025 has begun with policymakers manoeuvring through an uncertain economic backdrop. Among the G10 central banks that regulate the most actively traded currencies, three of the four that met last month — Sweden, the ECB, and Canada — persisted with their rate-cutting cycles. On the other hand, Japan, which seldom increases rates, hiked them for the second time in under a year. Central banks grapple with uncertainty The US Federal Reserve and Norway's Norges Bank stayed on the sidelines, and the Bank of England has cut rates this week. The changes come Donald Trump returned to the white house with a bang, launching trade tariff salvos and plans to shred multilateralism and regulation. The Bank of Canada explicitly cautioned about the risks to its economy, and the Federal Reserve chief indicated the US Central Bank is in no rush to cut rates anytime soon. In emerging markets, three central banks cut and one raised rates in January. While South Africa and Indonesia chose to keep their rates unchanged, turkey reduced them by 0.25 per cent, bringing them down to an eye-watering 45 per cent. Brazil has been struggling owing to concerns about its debt load. At its most recent meeting, it hiked rates by one per cent and has already pencilled in another increase for March. The Reserve Bank of India cut rates for the first time since May 2020, while China's central bank kept its powder dry as it waited for the tariff hit from Washington. Most major central banks in the developed market, barring Japan, are expected to continue with their bias for easing policy this year. However, if Trump's trade battle turns ugly and inflationary as expected, central banks in Europe, Canada, and Australia are likely to be hit the hardest. The real question is: should policymakers be wary of inflationary pressures as an expected fallout from the tariff wars or should they focus on growth measures? For now, central banks are grappling with uncertainty in 2025's foggy economic landscape. (With inputs from the agencies)

2025's foggy economic landscape weighs on the monetary outlook

The idea that the Federal Reserve would hike rates instead of lowering them has surfaced among a small but vocal group of bond dealers.
However, it is, at best, a long shot.

With Trump's Inauguration, Will Fed's Next Move Be Lower Or Higher?

After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves.

Powell Says 2024 Inflation Forecast Has 'Kind Of Fallen Apart'

After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves.



After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves.

Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective.

Powell said that any changes would depend on continued success in reducing price rises, and thus, they lowered their expectations for rate decreases next year. After viewing a weakening labour market as the bigger threat in September, policymakers have shifted their stance to place a higher emphasis on inflation.

However, new data and Trump's policies have rekindled worries that inflation will remain stubbornly high, beyond the central bank's 2 per cent target. Policymakers now only expect two rate cuts next year, which is half the number of reductions predicted in September.

Jerome Powell, the US Federal Reserve chair, said and I quote, "So I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals, maximum employment and price stability. We see the risks as two-sided, moving too slowly and needlessly undermine economic activity in the labour market, or move too quickly and needlessly undermine our progress on inflation. So, we're trying to steer between those two risks, and on balance, we decided to go ahead with a further cut. And I'll give you some details on why. Downside risks to the labour market do appear to have diminished, but the labour market is now looser than pre-pandemic, and it's clearly still cooling further so far in a gradual and orderly way. We don't think we need further cooling in the labour market to get inflation down to 2 per cent."

The market's reaction to the Fed's revised forecast was rapid and severe.

The US dollar surged to its best level in over two years while Wall Street stocks and the US Treasury fell. Despite being marginally higher before the announcement, the S&amp;P 500 index had its worst "Fed day" since March 2020, plunging 3 per cent.

Fed's hawkish bias jolted Asian markets, with regional stocks and currencies tumbling. South Korea's won fell to its weakest level since the financial crisis. The ringgit hit its weakest level against the dollar since August, while the Thai baht also fell.

Speculative assets, including bitcoin, retreated, and the price fell below 100,000 dollars. The digital asset fell about 1 per cent to 99,800 dollars. That followed a 5.1 per cent drop on Wednesday, the biggest retreat since September.&nbsp;

(With inputs from the agencies)

After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday.

After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves. Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective. Powell said that any changes would depend on continued success in reducing price rises, and thus, they lowered their expectations for rate decreases next year. After viewing a weakening labour market as the bigger threat in September, policymakers have shifted their stance to place a higher emphasis on inflation. However, new data and Trump's policies have rekindled worries that inflation will remain stubbornly high, beyond the central bank's 2 per cent target. Policymakers now only expect two rate cuts next year, which is half the number of reductions predicted in September. Jerome Powell, the US Federal Reserve chair, said and I quote, "So I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals, maximum employment and price stability. We see the risks as two-sided, moving too slowly and needlessly undermine economic activity in the labour market, or move too quickly and needlessly undermine our progress on inflation. So, we're trying to steer between those two risks, and on balance, we decided to go ahead with a further cut. And I'll give you some details on why. Downside risks to the labour market do appear to have diminished, but the labour market is now looser than pre-pandemic, and it's clearly still cooling further so far in a gradual and orderly way. We don't think we need further cooling in the labour market to get inflation down to 2 per cent." The market's reaction to the Fed's revised forecast was rapid and severe. The US dollar surged to its best level in over two years while Wall Street stocks and the US Treasury fell. Despite being marginally higher before the announcement, the S&P 500 index had its worst "Fed day" since March 2020, plunging 3 per cent. Fed's hawkish bias jolted Asian markets, with regional stocks and currencies tumbling. South Korea's won fell to its weakest level since the financial crisis. The ringgit hit its weakest level against the dollar since August, while the Thai baht also fell. Speculative assets, including bitcoin, retreated, and the price fell below 100,000 dollars. The digital asset fell about 1 per cent to 99,800 dollars. That followed a 5.1 per cent drop on Wednesday, the biggest retreat since September. (With inputs from the agencies)

Fed's rate cut sparks inflation concerns, market selloff

New Delhi
After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves.
Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective.
Powell said that any changes would depend on continued success in reducing price rises, and thus, they lowered their expectations for rate decreases next year. After viewing a weakening labour market as the bigger threat in September, policymakers have shifted their stance to place a higher emphasis on inflation.
However, new data and Trump's policies have rekindled worries that inflation will remain stubbornly high, beyond the central bank's 2 per cent target. Policymakers now only expect two rate cuts next year, which is half the number of reductions predicted in September.
Jerome Powell, the US Federal Reserve chair, said and I quote, "So I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals, maximum employment and price stability. We see the risks as two-sided, moving too slowly and needlessly undermine economic activity in the labour market, or move too quickly and needlessly undermine our progress on inflation. So, we're trying to steer between those two risks, and on balance, we decided to go ahead with a further cut. And I'll give you some details on why. Downside risks to the labour market do appear to have diminished, but the labour market is now looser than pre-pandemic, and it's clearly still cooling further so far in a gradual and orderly way. We don't think we need further cooling in the labour market to get inflation down to 2 per cent."
The market's reaction to the Fed's revised forecast was rapid and severe.
The US dollar surged to its best level in over two years while Wall Street stocks and the US Treasury fell. Despite being marginally higher before the announcement, the S&amp;P 500 index had its worst "Fed day" since March 2020, plunging 3 per cent.
Fed's hawkish bias jolted Asian markets, with regional stocks and currencies tumbling. South Korea's won fell to its weakest level since the financial crisis. The ringgit hit its weakest level against the dollar since August, while the Thai baht also fell.
Speculative assets, including bitcoin, retreated, and the price fell below 100,000 dollars. The digital asset fell about 1 per cent to 99,800 dollars. That followed a 5.1 per cent drop on Wednesday, the biggest retreat since September. 
(With inputs from the agencies)

Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective.



New Delhi After a third consecutive interest rate cut, Federal Reserve officials brought inflation worries back to the forefront as 2024 came to a close. The Fed did what markets expected Wednesday. But that didn't stop investors from dumping risk assets in droves. Chair Jerome Powell bluntly said the Fed's inflation forecast for the remainder of the year has "kind of fallen apart." After nearly four years of failure, officials now anticipate that inflation will take far longer to attain their 2 per cent objective. Powell said that any changes would depend on continued success in reducing price rises, and thus, they lowered their expectations for rate decreases next year. After viewing a weakening labour market as the bigger threat in September, policymakers have shifted their stance to place a higher emphasis on inflation. However, new data and Trump's policies have rekindled worries that inflation will remain stubbornly high, beyond the central bank's 2 per cent target. Policymakers now only expect two rate cuts next year, which is half the number of reductions predicted in September. Jerome Powell, the US Federal Reserve chair, said and I quote, "So I would say today was a closer call. But we decided it was the right call because we thought it was the best decision to foster achievement of both of our goals, maximum employment and price stability. We see the risks as two-sided, moving too slowly and needlessly undermine economic activity in the labour market, or move too quickly and needlessly undermine our progress on inflation. So, we're trying to steer between those two risks, and on balance, we decided to go ahead with a further cut. And I'll give you some details on why. Downside risks to the labour market do appear to have diminished, but the labour market is now looser than pre-pandemic, and it's clearly still cooling further so far in a gradual and orderly way. We don't think we need further cooling in the labour market to get inflation down to 2 per cent." The market's reaction to the Fed's revised forecast was rapid and severe. The US dollar surged to its best level in over two years while Wall Street stocks and the US Treasury fell. Despite being marginally higher before the announcement, the S&P 500 index had its worst "Fed day" since March 2020, plunging 3 per cent. Fed's hawkish bias jolted Asian markets, with regional stocks and currencies tumbling. South Korea's won fell to its weakest level since the financial crisis. The ringgit hit its weakest level against the dollar since August, while the Thai baht also fell. Speculative assets, including bitcoin, retreated, and the price fell below 100,000 dollars. The digital asset fell about 1 per cent to 99,800 dollars. That followed a 5.1 per cent drop on Wednesday, the biggest retreat since September. (With inputs from the agencies)

There will be a 24-hour frenzy of choices spearheaded by the Federal Reserve to end the year in which most developed nations were able to begin easing their monetary policies due to falling inflation.

Fed Rate Cut Takes Center Stage in Flurry of Decisions

There will be a 24-hour frenzy of choices spearheaded by the Federal Reserve to end the year in which most developed nations were able to begin easing their monetary policies due to falling inflation.



After cutting rates for two consecutive times, Federal Reserve officials eased rates again this month. However, the Fed is forecast to reduce the number of rate cuts next year. That is according to analysts polled by Bloomberg News.

At their meeting on December 17–18, the Fed is likely to announce another quarter-point cut, bringing the key rate down to a range of 4.25 per cent to 4.50 per cent. That would make rates a full percentage point lower. The majority of analysts foresee just three cuts in 2025. This is due to concerns about inflation. 
 
As a result, rate cuts are expected to slow down next year by more than authorities projected three months ago.

Dennis Shen, an economist with scope ratings, said, “The case for further US rate cuts beyond this month has decreased meaningfully.” Shen added, “Inflation has remained sticky, the economy and financial markets are overheating, the slight rise in unemployment earlier this year has reversed, and the incoming trump administration threatens more near-term inflation risk.”

Economists predict the Fed will pause the rate cuts at its January meeting and cut again in March. June and September 2025 will see the other two rate cuts. Not long ago, many analysts predicted a more aggressive path of rate cuts in 2025, driven by concerns about a weaker labour market. 
 
However, predictions for the US economy and monetary policy have changed significantly.

(With inputs from the agencies)

After cutting rates for two consecutive times, Federal Reserve officials eased rates again this month. However, the Fed is forecast to reduce the number of rate cuts next year.

After cutting rates for two consecutive times, Federal Reserve officials eased rates again this month. However, the Fed is forecast to reduce the number of rate cuts next year. That is according to analysts polled by Bloomberg News. At their meeting on December 17–18, the Fed is likely to announce another quarter-point cut, bringing the key rate down to a range of 4.25 per cent to 4.50 per cent. That would make rates a full percentage point lower. The majority of analysts foresee just three cuts in 2025. This is due to concerns about inflation. As a result, rate cuts are expected to slow down next year by more than authorities projected three months ago. Dennis Shen, an economist with scope ratings, said, “The case for further US rate cuts beyond this month has decreased meaningfully.” Shen added, “Inflation has remained sticky, the economy and financial markets are overheating, the slight rise in unemployment earlier this year has reversed, and the incoming trump administration threatens more near-term inflation risk.” Economists predict the Fed will pause the rate cuts at its January meeting and cut again in March. June and September 2025 will see the other two rate cuts. Not long ago, many analysts predicted a more aggressive path of rate cuts in 2025, driven by concerns about a weaker labour market. However, predictions for the US economy and monetary policy have changed significantly. (With inputs from the agencies)

Fed to cut rates once more before slowing the pace in 2025

Federal reserve chair Jerome Powell bracketed gold and bitcoin as speculative assets. This has increased the raging global debate on gold vs bitcoin as assets with a store of value. Take a look at this next report for more...

Fed's Powell Puts Bitcoin and Gold in the Same Bracket

The Federal Reserve delivered a quarter-point interest-rate cut on thursday — the second-straight reduction as widely expected. While the fed suggested a steady rat-cut path in the current easing cycle, economists and investors have reduced their bets for how low rates will fall, partially because of Trump's win.

Fed Delivers Back-to-back Rate Cuts, Signals Steady Easing Path

A poor Oct US Jobs report allows the fed to continue on its easing path. US Policymakers are now on course to reduce interest rates by a quarter point at their meeting this week.

Will It Be Another Jumbo-sized Fed Rate Cut?

Concerns are rising that the US Federal reserve's decision to start cutting rates may have been premature or not sustainable. This is signalled by price action in some of the most risk-sensitive assets in the world - in emerging markets. Watch in for more details!

Is The Fed's Decision To Cut Rates Premature?

The notion that interest-rate decisions will be made meeting by meeting. Based on incoming data has been emphasised by federal reserve chair Jerome Powell for the past several months. However, critics say this approach is creating volatility and weighing on the economy instead.

Is the Fed Right in Waiting for Data for Forward Guidance ?

The federal reserve is focusing more of its policy efforts on protecting the Labour market. The expectation that US Inflation likely eased at the end of the third quarter should reassure US Policymakers. US Inflation data is due this week, along with the minutes of the fed meeting in September, when the central bank cut rates by 0.5 percent.

FED & ECB Meeting Minutes in the Spotlight

The US Federal Reserve's decision to cut rates by a big margin seven weeks before the vote has it fielding criticism from both political parties. It is in the Fed's best interest to keep its distance from politics. However, the Fed's daring move to boost the economy in the weeks leading up to a high-stakes election comes into the spotlight.

US Fed Spurring Economy Close to Election

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