Latest Finance-Economy News
Federal Reserve cuts rates by 25 bps amid cooling labor market
The Federal Open Market Committee reduced the federal funds rate by 25 basis points at its December meeting, citing softening employment and a need to balance labor-market risks and price stability; the vote included three dissents reflecting division among policymakers.
US November jobs report shows weak payroll gains and rising unemployment
BLS-delayed data showed nonfarm payrolls rose only 64,000 in November and the unemployment rate climbed to 4.6%, the highest in over four years, fueling debate over the economy’s strength and supporting the Fed’s decision to ease.
Markets react mixed to soft US economic data; Treasury yields fall
Stocks closed mixed with the S&P 500 down and Nasdaq up after dovish payroll and retail data; the 10-year Treasury yield dipped to about 4.15% as markets priced in greater odds of Fed easing.
PNC upgrades 2025–26 GDP forecasts after data revisions
PNC Economics raised its median real GDP forecast for 2025 to 1.7% and lifted 2026 forecast to 2.3%, citing clearer post-shutdown data and improving momentum in growth indicators.
Atlanta Fed president warns FOMC credibility on inflation could be at stake
Atlanta Fed’s Raphael Bostic argued the December rate cut was a close call and stressed the tradeoffs between supporting a cooling labor market and maintaining inflation credibility.
EU digital services tax plan draws US retaliation threat
U.S. officials warned of potential retaliatory measures, including a Section 301 investigation, in response to the EU’s proposed digital services tax, escalating transatlantic trade tensions.
China announces consumption-boosting policies to expand domestic demand
China’s Central Finance Office and NDRC prioritized expanding domestic demand and launched actions to 'vigorously enhance residents' desire to spend' as policymakers focus on consumption-led growth.
Energy and commodity moves: precious metals soften, solar stocks slide
Precious metals weakened while several solar and mining stocks fell—Xintai Electronics dropped over 8% and Western Gold Resources fell more than 7%—reflecting sector-specific pressures and broader market volatility.
Mortgage and housing markets: mortgage rates steady near 6–6.5% despite Fed cut
Mortgage servicer analysis shows mortgage rates remained around 6.0–6.5% with refinancing cooled and home equity at record levels, while the 10-year Treasury yield moderated to ~4.02%.
Nomura lists new yen‑hedged ETFs on Tokyo exchange
Nomura Asset Management launched ETFs tracking EURO STOXX 50 and DAX in JPY total‑return form on the Tokyo Stock Exchange, expanding yen‑hedged passive options for Japanese investors.
Market strategists see more rate cuts likely in 2026 as unemployment rises
Research briefs from The Conference Board and other strategists say rising unemployment and cooling labor demand increase the likelihood of additional Fed cuts in 2026.
Analysts: AI investment and fiscal stimulus to support US growth into 2026
Investment managers note resilient household consumption, prospective fiscal stimulus, and AI‑led productivity gains as reasons for a constructive US growth outlook despite short‑term labor weakness.