Latest Finance-Economy News
Federal Reserve Set for Third Consecutive Interest Rate Cut
Federal Reserve officials are widely expected to cut the federal funds rate by 25 basis points, the third cut in 2025, responding to steady inflation and weakening labor market conditions. Futures markets price an 89% probability of this cut, anticipating rates to fall to 3.50%-3.75%. Chair Jerome Powell faces divided views within the Fed on balancing inflation control with employment support.
SpaceX Moves Forward with 2026 Initial Public Offering
SpaceX is planning a major IPO targeted for 2026, signaling a significant development in the private spaceflight and commercial aerospace sectors. This move is closely watched by markets for its potential to reshape aerospace investment and innovation landscapes.
US Private Sector Employment Declines Amid Cooling Labor Market
The ADP report estimates a fall of 32,000 private sector jobs from October to November, marking the largest decline since early 2023. Employment has fallen in four of the last six months, increasing pressure on the Fed to ease monetary policy further.
Eurozone Services Inflation Rises, ECB Faces Policy Dilemma
Services inflation in the Eurozone accelerated to 3.5% year-over-year in November, the highest since April 2025, raising concern for the European Central Bank. While monthly service prices fell 0.8%, the ECB is expected to maintain rates at current levels ahead of its December 18 policy meeting, given persistent inflationary pressures.
US Inflation Shows Signs of Weakening Despite Sticky Price Pressures
Core inflation excluding volatile food and energy prices remained at 2.4% annually in November but showed a monthly decline of 0.5%, indicating a gradual easing of inflation. This trend, juxtaposed with persistent labor costs in services, complicates Fed decisions on future rate changes.
US Economic Indicators Steady amid Mixed Hiring and Layoff Data
While total separations including layoffs have decreased slightly, hiring and quits rates have stagnated, reflecting a labor market that is tight but less dynamic. Economists warn this pattern may pose downside risks to employment growth if conditions deteriorate further.
White House Releases 2025 National Security Strategy Emphasizing Economic Leverage
The 2025 National Security Strategy outlines a focus on securing US economic interests globally, especially in the Indo-Pacific and Europe, by leveraging trade policies, alliances, and regional stability efforts. It emphasizes countering China’s rise and boosting US market access abroad.
Asian Development Outlook Raises Growth Forecast to 5.1% for 2025
The Asian Development Bank has raised its economic growth forecast for developing Asia and the Pacific to 5.1% for 2025, reflecting resilience in the region despite global uncertainties and supply chain adjustments.
Market Reactions Show Rate Cut Expectations Influence Bond Yields and Mortgage Rates
Following the anticipated Fed rate cut, US Treasury yields on two-year bonds have declined, while mortgage rates remain below recent peaks but trend upward, influenced by Treasury market movements and political pressures on Fed policies.
Geopolitical Tensions and Trade Policies Shape Economic Outlooks Globally
Geopolitical developments, including strategic security concerns in the Indo-Pacific and evolving US-Europe relations, alongside trade policy adjustments addressing China’s exports, are crucial factors influencing global economic stability and investment climates.