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 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Dow Hits 50,000 as U.S. Stocks Stage Strong Rebound Amid AI Volatility 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
BOJ Policymakers Warn Weak Yen Could Fuel Inflation Risks and Delay Rate Action 
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.
