Latest Finance-Economy News
Stocks, Bonds, and Dollar Waver Ahead of US Jobs Report
US stocks show mixed performance with Nasdaq off 0.3% and financials outperforming via KBW Banks Index up 10% this month. Bond yields steady at 4.18% on 10-year, as markets anticipate weaker jobs data could lower Fed funds rates and boost assets. Moderation in jobs numbers may fuel bullishness, per analyst Mike Wilson.
FOMC Cuts Rates by 25bps, Signals Potential Pause in January
The Fed implemented its third consecutive 25bps rate cut on December 10, adopting a 'wait and see' stance on economic evolution. Chair Powell noted future easing more likely than tightening, amid divided committee views on 2026 path.
Fed Upgrades 2025 GDP Forecast to 1.7%, 2026 to 2.3%
December Summary of Economic Projections raised median real GDP growth to 1.7% for 2025 and 2.3% for 2026, citing improving momentum and base effects from prior government shutdown. Higher productivity supports growth without rekindling inflation, potentially raising neutral rate.
November CPI Forecast: Headline 3.0%, Core 2.9% Year-over-Year
November headline CPI expected at 3.0% and core at 2.9% on year-ago basis, stable from September amid tariff passthrough risks. Inflation remains elevated but not increasing, providing some encouragement.
US Nonfarm Payrolls Expected at +15k for November, Unemployment to 4.5%
November payrolls forecast at +15k after October's -85k, with private sector at +30k; unemployment rate to rise to 4.5% from 4.4%. Data released alongside retail sales advance.
Stocks Fall as Bitcoin Extends 2025 Losses Amid Yield Stability
Equities declined with Bitcoin deepening yearly losses; Treasury yields showed minimal change, short end down 1bp, long end slightly up. Markets in holding pattern awaiting jobs report and government data.
Fed Division Widens on Interest Rates, Cautious on 2026 Outlook
FOMC statement hints at January pause after three cuts; dot plot projects one 2026 cut, widely dispersed. Inflation near 3% and tariff risks keep policymakers cautious, with expected Fed funds at 3-3.5%.
Labor Market Cools but Stable: Jobless Claims at 236k, Unemployment 4.4%
Initial jobless claims rose to 236k, highest in three months, but continuing claims fell to 1.84M. Unemployment steady at 4.4%, job openings up to 7.7M; wage growth outpaces inflation, supporting spending.
House Passes INVEST Act to Expand Private Market Access
Bipartisan 302-123 vote clears INVEST Act, widening investor eligibility and new capital channels for private markets. Aims to boost capital formation amid economic shifts.
Global Aid Budgets Hit Historic Lows, Millions at Risk in 2026
2025 saw record low humanitarian aid budgets amid turbulence, endangering millions in 2026. UN highlights crisis in global support for vulnerable populations.
Geoeconomics and Tech to Shape 'Cautious Stability' Global Economy
World Economic Forum outlines scenarios like 'Cautious Stability' where geopolitical normalization cuts risks but growth stagnates. Tech advances limited to few sectors, deepening digital divide by 2030.
RBC: Global Outlook Focuses on Growth, Inflation, Policy Shifts
RBC report tracks trends impacting global economy, including regional growth prospects, inflation forecasts, and monetary policy changes.