Latest Finance-Economy News
US Supreme Court Strikes Down IEEPA Tariffs, Sparking Uncertainty
The US Supreme Court ruled to strike down IEEPA tariffs, leading to ongoing spillover effects and anticipation of exemptions or shifts to new tariff tools under President Trump. Markets showed limited reaction amid data releases, reflecting apprehension over next steps.
This decision opens doors to revisiting tariffs amid excess US aggregate demand and inflation above Fed's 2% target.
Warren Buffett Indicator Hits 220.1%, Signaling Potential 2026 Stock Crash
The Warren Buffett indicator, comparing stock market value to GDP, reached 220.1%, exceeding pre-2022 decline levels and warning of overvaluation risks. Capital Economics and Goldman Sachs caution of S&P 500 double-digit declines if earnings growth slows amid rising rates and slowing profits.
Investors eye earnings reports and economic data for stability signals.
Fed Cuts Rates 175bps Since September, Remains Restrictive
The Federal Reserve has reduced policy rates by 175 basis points since September 2024, including 100bps post-US election, yet stays above neutral amid inflation concerns. Officials fear repeating pandemic-era easing mistakes as Trump criticizes insufficient accommodation.
Excess demand facilitates tariff pass-through to prices.
Bank of Canada Holds Dovish Stance After Strong Q4 GDP Surprise
Bank of Canada cut rates 25bps in December with dovish signals but faces upgraded GDP growth tripling expectations at 1.9% q/q SAAR. Core CPI remains low at 0.6% y/y, supporting gradual easing since April.
Policymakers balance recovery amid evolving data.
Bank of Korea to Hold Base Rate at 2.5% as Guided
Markets anticipate the Bank of Korea maintaining its 2.5% base rate unchanged on Thursday, per prior guidance. This decision aligns with stable policy amid global uncertainties.
New Zealand Reserve Bank Keeps OCR at 2.25% for Economic Recovery
Reserve Bank of New Zealand holds Official Cash Rate steady at 2.25% to bolster fragile economic recovery. Policymakers emphasize future stability in recent remarks.
US Inflation Eases but Stays Above Fed's 2% Target with Broader Pressures
US inflation has declined from peaks but remains above the Fed’s 2% goal, showing rising breadth that eases tariff pass-through to consumers. Positive output gap signals excess demand.
Global Auctions and Events Highlight Week of February 23-27
Key global auctions scheduled for February 23-27 amid tariff flux and central bank decisions. State of the Union developments dominate economic outlook.
Tech Sector Sell-Off Cools Markets as Valuations Draw Scrutiny
Stock markets cooled following a technology sector sell-off, with high Buffett indicator amplifying correction fears. Not all stocks overvalued; some like Trex trade below historical P/E averages after demand slowdowns.
Trump Tariff Shift Looms: Countries Await Exemption Details
President Trump plans switch to alternative tariff instruments post-Supreme Court ruling, potentially benefiting or harming specific countries. Details on exclusions pending, heightening global trade uncertainty.
Corporate Earnings Key to Averting S&P 500 Downside Risks
Goldman Sachs warns of S&P 500 declines if corporate earnings disappoint amid high valuations and slowing growth. Investors monitor interest rates, inflation, and valuation trends closely.