India Budget 2026: Modi Government Eyes Reforms Amid Global Uncertainty and Fiscal Pressures 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Wall Street Slides as Warsh Fed Nomination, Hot Inflation, and Precious Metals Rout Shake Markets 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
Trump Threatens 50% Tariff on Canadian Aircraft Amid Escalating U.S.-Canada Trade Dispute 
U.S.–Venezuela Relations Show Signs of Thaw as Top Envoy Visits Caracas 
Philippine Economy Slows in Late 2025, Raising Expectations of Further Rate Cuts 
South Korea Exports Surge in January on AI Chip Demand, Marking Fastest Growth in 4.5 Years 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
Why Trump’s new pick for Fed chair hit gold and silver markets – for good reasons 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
Wall Street Slips as Tech Stocks Slide on AI Spending Fears and Earnings Concerns 
Russia Stocks End Flat as MOEX Closes Unchanged Amid Mixed Global Signals 
The Federal Reserve kept interest rates unchanged on Wednesday, maintaining the benchmark rate at 4.25%-4.50%. While policymakers still forecast rate cuts in 2025, Fed Chair Jerome Powell cautioned against certainty, citing inflation risks tied to upcoming Trump administration tariffs.
Powell emphasized that future policy decisions remain data-dependent, with economic projections showing slowing growth and rising inflation. The Fed now expects GDP growth to slow to 1.4% in 2025, unemployment to rise to 4.5%, and inflation to hit 3%, driven in part by import tariffs. Powell warned that these tariffs will likely create a "meaningful" inflation surge as the burden shifts from manufacturers and retailers to consumers.
Though the Fed still anticipates two rate cuts in 2025, it scaled back its outlook for 2026 and 2027 to just one cut per year. Seven out of 19 officials see no rate cuts ahead, underscoring internal disagreement over inflation risks and labor market strength.
Despite Trump's public criticism of Powell and demands for immediate rate cuts, the Fed remains cautious, preferring to observe the impact of tariff-driven cost pressures. Powell dismissed political pressure, saying the Fed is positioned to react based on data, not rhetoric.
Stock markets remained flat, and Treasury yields were largely unchanged. Futures trading continues to price in a potential rate cut by the Fed’s September meeting.
While labor conditions remain stable, the Fed’s outlook reflects stagflation risks: lower growth alongside persistent inflation. Powell noted that tariff uncertainty and geopolitical tensions—like the Israel-Iran conflict—complicate the inflation outlook, reinforcing the Fed's wait-and-see stance.
The central bank remains focused on returning inflation to its 2% target, even amid volatile global and domestic policy developments.
