BOJ Holds Interest Rates Steady, Upgrades Growth and Inflation Outlook for Japan 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
China Holds Loan Prime Rates Steady in January as Market Expectations Align 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
BOJ Rate Decision in Focus as Yen Weakness and Inflation Shape Market Outlook 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
The U.S. Federal Reserve has announced a 25-basis-point (bps) cut in its main interest rate, bringing it down to a target range of 4.50% to 4.75%. All Fed officials unanimously supported this decision, showing that they all agreed with this move based on the current economic situation.
Comparison with Previous Rate Cuts
On November 7, 2024, the Federal Reserve cut its interest rate by 25 basis points (bps), a smaller reduction than the 50 bps cut in September 2024. This indicates a cautious approach as the Fed adjusts to evolving economic conditions and recent political changes. Prior to these cuts, rates peaked at 5.25% in mid-2023 after several increases.
Economic Context
The September cut represented the first reduction after a four-year hiatus from rate cuts, with current inflation at around 2.4%. Although inflation pressures have eased, they remain a concern. The labor market is also showing signs of cooling, with slower job growth and slightly rising unemployment rates influencing the Fed's recent decision.
Future Projections
The Fed has indicated that while additional cuts may occur, they will depend on ongoing economic data, particularly regarding inflation and employment. Future cuts are expected in December 2024 and possibly into 2025, but with increased uncertainty due to possible inflationary pressures from proposed policies under President-elect Donald Trump. This gradual approach reflects the Fed’s vigilance about potential inflation risks.
