News list for "The Federal Reserve"
Mr. Bescent, the US Treasury secretary, said on Wednesday he planned to push for a requirement that the 12 regional Fed presidents reside in their jurisdictions for at least three years before being appointed to lead them. Mr. Bescent said he would push for future appointments of candidates who did not meet that requirement, with the Fed's board of governors in Washington exercising veto power. "The Fed chairperson and the board of governors... have the final say on who is chosen to the boards o...
Luca Paolini, strategist at Pictet Asset Management, said that the dollar will face a new round of weakness next year as slowing economic growth paves the way for the Federal Reserve to further cut interest rates. He noted that the dollar's interest rate spread is narrowing significantly. "We expect the U.S. economy to become slightly weaker, which will allow inflationary pressures to slowly subside." Relatively speaking, economic growth in the rest of the world is likely to improve, particularl...
Strategists at Morgan Stanley say the yen could appreciate nearly 10 per cent against the dollar over the next few months if the Federal Reserve cuts interest rates in a row amid growing signs of a US slowdown. The dollar/yen is currently out of fair value, and if that relationship returns, the US-Japan exchange rate will fall in Quarter 1 2026 as lower Treasury yields could push down fair value, strategists including Matthew Hohenbach write. They note that "along with this...
Traders on Friday upped their bets that the Federal Reserve will cut interest rates for the third time in a row at its December meeting after Williams said the central bank could cut rates in the "near term", according to foreign media reports. Short-term interest rate futures are now pricing in a 57% chance of a rate cut in December, up from below 50% previously.
Strategists at HSBC Global Investment Research noted in a note that the dollar could bottom in Quarter 1 or earlier in 2026 before rallying. They believe the Federal Reserve could cut rates again in December, but the likelihood of further cuts in 2026 is low. Money markets are divided on a December rate cut, but expect a cumulative 85 basis points of rate cuts by the end of 2026, according to Refinitiv data. HSBC forecasts that the euro will rise to 1.20 against the dollar in Quarter 1 this year...
Federated Hermes chief investment Deborah Cunningham said in the report that the agency will reassess its forecast for a 25 basis point Fed rate cut in December and expects government data to resume soon. She added that while the longer it drags on, the more the market will rely on limited outdated data, the financial system itself has not changed. The US fiscal function has not been affected, new debt is still being auctioned, there are no restrictions on transactions with the Fed, and the liqu...
The Reserve Bank of Australia expects core inflation to remain above its target range until mid-2026, as consumer demand and house prices grow faster than expected, limiting the scope for further rate cuts. The Reserve Bank of Australia on Tuesday left its cash rate unchanged at 3.60% as expected, having cut rates three times this year in February, May and August. In a statement, the Reserve Bank of Australia said recent data, including stronger economic growth, stubborn inflation and a still ti...
Traders have fully priced in that the Federal Reserve will cut interest rates twice more before the end of 2025.
Traders have fully priced in that the Federal Reserve will cut interest rates twice more before the end of 2025.
Vincenzo Vida, global chief investment officer at WS Group, said one of the main drivers of gold's rally was expectations of further interest rate cuts by the Federal Reserve, which made it more attractive relative to fixed income assets. Gold prices recently broke through the $4,000-an-ounce mark for the first time, up more than 50% this year. Silver also rallied sharply, outperforming even gold this year. But if things change, such as inflation not slowing as expected, gold prices could come u...
