BOJ Governor Ueda Meets Key Ministers as Markets Eye Policy Shifts Under New Leadership 
Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Brazil Central Bank Plans $2 Billion Dollar Auctions to Support FX Liquidity 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
New RBNZ Governor Anna Breman Aims to Restore Stability After Tumultuous Years 
Bank of Korea Holds Interest Rates Steady as Weak Won Limits Policy Flexibility 
BOJ’s Noguchi Calls for Cautious, Gradual Interest Rate Hikes to Sustain Inflation Goals 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
The Federal Reserve's latest meeting minutes reveal plans for a slower pace of interest rate cuts, influenced by policy uncertainties tied to President-elect Donald Trump. Analysts at Goldman Sachs noted that Trump's proposed tariffs and mass deportations have raised concerns about inflation trends.
Fed officials highlighted risks tied to Trump's policies, suggesting inflation's return to the 2% target may take longer than anticipated. While the Federal Open Market Committee cut rates by one percentage point in 2024, some members favored a cautious approach to further reductions, citing upside risks to inflation.
Market expectations now lean toward stable borrowing costs in the near term, with the next rate cut forecasted no earlier than May. This sentiment gained traction after private payroll data showed a slowdown in December, while jobless claims declined.
Goldman Sachs analysts observed the absence of discussion about the Fed’s balance sheet reduction in the minutes. They revised their timeline for quantitative tightening (QT), now anticipating Treasury runoff to extend through March and mortgage-backed securities runoff to end in June.
The Fed's careful stance reflects ongoing efforts to balance economic growth, inflation risks, and policy uncertainties, leaving markets attuned to upcoming data, including Friday’s US employment report.
