ECB Cuts Rates Again Amid Inflation Progress and Trade Uncertainty  As was fully anticipated by every economist surveyed and entirely reflected in market pricing, the European Central Bank proceeded with a reduction in its deposit rate. This move represented the eighth consecutive downward adjustment in interest rates. The change, however, is ...

Fed Holds Rates Steady Amid Rising Economic Uncertainty  Following an anticipated move by China's central bank to reduce interest rates and inject substantial liquidity into its financial system, likely as a strategic gesture ahead of sensitive trade negotiations, the United States Federal Reserve made its own policy statement. The Federal Ope...

Federal Reserve Holds Rates Steady, Markets Eye Future Signals  The Federal Reserve is set to announce its latest decision regarding interest rates on Wednesday, with the announcement expected in the evening. Following the announcement, Chair Jerome Powell will hold a press conference, which is anticipated to begin shortly after. Unlike some p...

Fed Stays Cautious Amid Rising Economic Uncertainty  A great deal has unfolded since the last gathering of the Federal Open Market Committee in mid-March, creating a vastly different economic landscape from what existed just a few short weeks ago. The financial markets have been thrown into significant disarray, with sharp and sweeping changes...

Federal Reserve Signals Policy Shift with QT Slowdown and Rate Outlook  The Federal Reserve remains firmly in a wait and see approach when it comes to its monetary policy decisions While its latest statement reflects a hawkish stance there are mixed signals in economic projections suggesting a stagflationary outlook The dot plot also leans haw...

30-Year Bond Auction Ends Weak Amid Market Volatility  The final government bond auction of the week has now concluded. After a lackluster three-year note sale and a strong demand for the ten-year bond earlier in the week, today's reopening of the nearly thirty-year bond landed somewhere in the middle. The bond was issued with a yield of 4.623...

Swiss National Bank Cuts Rates by 50bp Amid Easing Inflation Pressures  Once more, the Swiss National Bank (SNB) has caught markets off guard with an unexpected 50 basis points (bp) rate cut, deviating significantly from the anticipated 25bp reduction. This bold move has lowered the SNB's key interest rate to 0.5%, down from the previous 1%, s...

Global Markets Weekly Wrap KW 47 : US Markets Rise Broadly Amid Positive Economic Sentiment  The U.S. stock markets made significant strides this week, with major indexes nearing record highs as investors regained confidence following recent losses. These gains came amid ongoing uncertainty surrounding the Trump administration's policy directi...

Paul Tudor Jones Overstates U.S. Debt and Interest Rate Risks  Recently, Paul Tudor Jones expressed concerns about the United States' rising deficits, mounting debt, and increasing interest rates, warning that these dynamics could lead to a fiscal crisis. He suggested that sustained borrowing would inevitably lead to higher inflation, elevated...

This past week in the US stock market saw significant volatility due to a busy schedule of earnings reports and economic data releases Major indexes generally trended lower with T Rowe Price traders describing the week as exceptionally active on both economic macro and earnings micro fronts Early in the week the Nasdaq Composite and S&P MidCap ...

Japan's Negative Rates: The Hidden Threat to US Tech Stock Valuations  As the US stock market continues to reach new highs, it's natural for investors to speculate about where the greatest risk to this bull market might come from. However, many are focused on the wrong potential threats. The biggest risk to the bull market isn't from a US rece...

Treasury Auction Disappoints as Yields Surge Amid Market Selloff  On a day when stocks are plunging, driven by the sudden recognition of rising yields, expectations were high for today's reopening of the 20-year Treasury auction, specifically for the 19-year, 10-month Cusip UD8. However, the auction didn't live up to those expectations. The hi...

Fed Rate Cut Hopes Fade as Strong US Economic Data Boosts Uncertainty  Expectations for swift interest rate cuts by the US Federal Reserve are once again facing challenges, bringing renewed uncertainty to stock markets. Recent strong economic data from the US has pushed the 10-year Treasury yield above 4%, its highest level since early August....

Evolving Monetary Policy : Rising Debt and Central Bank Challenges  In recent years, the way monetary policy influences the economy has shifted significantly, especially with the rise in global debt levels. As governments take on heavier debt burdens, the effects of increasing interest rates have evolved, posing new challenges for policymakers...

Powell to Address Fed's Unexpected Rate Cut and Economic Outlook  Since the Federal Open Market Committee (FOMC) meeting in July, U.S. macroeconomic data has consistently exceeded expectations, signaling a strengthening economy. However, despite the positive outlook, the Federal Reserve made a surprising move on September 18, cutting interest ...

China's PBOC Unveils Major Stimulus Package to Boost Economy and Housing  After much speculation across social media, a Chinese zoo recently admitted that their supposed "panda bears" are, in fact, "panda dogs" — regular dogs with painted fur to resemble pandas. This somewhat strange occurrence parallels a more serious admission by the Chinese...

Federal Reserve Faces Pressure as Inflation and Debt Concerns Mount  Last week, GnS Economics predicted that the Federal Reserve would implement a 25 basis points (bps) rate cut. Our reasoning behind this forecast is grounded in recent economic indicators. Specifically, the 'super-core' inflation, which measures services inflation excluding en...

ECB Cuts Rates to 3.50%, Revises Inflation and Growth Forecasts  The European Central Bank (ECB) has reduced interest rates by 25 basis points, lowering the deposit facility rate to 3.50%. This action is in line with the ECB's ongoing strategy of data-dependent monetary policy. In addition to the rate cut, the ECB announced that it will reduce...

Bank of Canada Cuts Rates Again Amid Inflation and Economic Concerns  Hungary ends its rate cuts as prices rise and the currency weakens becoming the first central bank to conclude its easing cycle prematurely. Other central banks still have some time before reaching this point. The Bank of Canada recently reduced its overnight lending rate by...

Fed Rate Cuts Won't Prevent Rising Government Debt and Interest Costs  Even if the Federal Reserve implements the over 200 basis points of interest-rate cuts anticipated by the market, it won't significantly reduce the rapidly increasing interest payments on government debt. This makes it more likely that the government will issue more debt an...