By Michael S. Derby (Reuters) -Federal Reserve Bank of Cleveland President Beth Hammack warned Thursday that cutting rates further right now carries a wide range of risks for the economy. Given the persistence ​of inflation running over the Fed’s 2% target, “lowering interest rates to support the ‌labor market risks prolonging this period of elevated inflation, and it could also encourage risk-taking in financial markets,” Hammack said, according ‌to the text of a speech to be presented at a conference h ...

Philippine bonds are poised for further gains as political uncertainties lead investors to anticipate some of the most aggressive interest rate cuts in the nation compared with its emerging Asian peers https://t.co/LrOwqX4fjt ...

Core Viewpoint - The Federal Reserve's interest rate cuts aim to stimulate job creation amid a slowdown in the labor market, but experts express skepticism about their effectiveness in addressing underlying issues such as a shrinking workforce and the impact of artificial intelligence [3][4][9]. Labor Market Dynamics - The U.S. economy added only 22,000 jobs in August, with job losses occurring in June for the first time in four years, indicating a significant slowdown in job creation [2]. - The labor force participation rate was at 62.3% in August, a full percentage point below pre-pandemic levels, highlighting challenges in labor supply [1]. - Fed Chair Jerome Powell described the current labor market situation as a "curious balance," where low unemployment persists despite fewer job seekers [2]. Interest Rate Cuts - The Federal Reserve has cut its benchmark interest rate by a quarter of a percentage point in recent meetings, with potential for further cuts in December to stimulate hiring [3][10]. - Lower interest rates are intended to reduce borrowing costs, encouraging consumer spending and business expansion, which could lead to increased hiring [6][7]. Economic Implications - Fed officials are divided on whether to continue cutting rates to boost the job market or maintain higher rates to control inflation, which has exceeded the Fed's 2% target for five years [3][10]. - Some experts argue that rate cuts may not effectively address labor market weaknesses, suggesting that a lack of skilled workers could lead to inflation rather than job growth [9][11]. Consumer Behavior - High borrowing costs are currently hindering low- and middle-income families from making significant purchases, such as cars, which could further strain the economy [8]. - Fed Governor Christopher Waller supports a rate cut in December to alleviate financial pressures on households and prevent further deterioration in the labor market [8].

Bank and financial stocks are on the cusp of crashing through key support levels, sending a warning sign to the rest of the stock market. Most Read from Bloomberg Weakness in the sector, driven by a combination of credit problems and traders trimming bets on interest rate cuts from the Federal Reserve, threatens to take out one of the pillars of the market’s hoped-for-advance through the end of the year. The KBW Bank Index has fallen 4.5% over the last five trading sessions, badly underperforming the S&P ...

Group 1 - The dollar is declining ahead of upcoming jobs data, which may impact expectations regarding potential interest rate cuts by the Federal Reserve in December [1][2] - The ADP will release weekly private sector employment data, gaining significance due to the recent government shutdown that delayed official data [2] - The resumption of employment data is expected to increase near-term foreign exchange volatility, with multiple jobs reports likely to cause significant market fluctuations ahead of the December Fed meeting [2]

Group 1 - The Nasdaq is experiencing multi-year strength due to factors such as ongoing interest rate cuts by the Federal Reserve, which make borrowing cheaper and encourage corporate investment and consumer spending [1] - AI enthusiasm is driving earnings growth and significant investments in major tech companies, contributing to the Nasdaq's performance [1] - Strong consumer spending, supported by a solid economy and the holiday season, along with continued corporate earnings expansion in the tech sector, provides a solid foundation for Nasdaq gains heading into the new year [1] Group 2 - Potential headwinds for the Nasdaq rally include high valuations in tech stocks, which may be vulnerable if growth does not meet expectations [2] - Economic uncertainties such as potential trade tensions, new tariffs, or a cooling labor market could pose risks to the Nasdaq [2] - The Nasdaq's heavy reliance on a few mega-cap tech companies creates concentration risk, where any issues with these leaders could lead to broader market volatility [2] Group 3 - The Nasdaq is up 54% year-to-date, following a 26% return in 2024, and has rallied about 59% since April 2025 with minimal corrections [4] - The 50-day simple moving average (SMA) has supported the April rally, with only five retests, indicating a strong upward trend [4] - Despite concerns of overextension and potential corrections, the Nasdaq has continued to defy predictions of downturns, showing little sign of reversing its trend [4] Group 4 - The December Nasdaq futures contract will soon roll over to the March contract, with significant historical correlations observed in previous years [6] - The correlation percentages for years such as 1997, 2010, 2014, 2018, and 2021 are all above 87%, indicating a strong historical trend [6] - Current correlation trends show a steady uptrend into year-end, providing a potential roadmap for future market behavior [6]

Canada’s housing market bounced back in October, with both sales and prices rising, as the central bank’s rate cuts appear to be nudging buyers off the sidelines https://t.co/IHvj6v2fsX ...

Core Points - Former Federal Reserve Governor Adriana Kugler resigned after her request for a waiver to address financial holdings was denied by Chair Jerome Powell, amid an internal probe regarding her financial disclosures [1][3][4] - Kugler's financial disclosures revealed violations of the Fed's ethics rules, leading to a referral to the board's inspector general [2][5] - Kugler's resignation allowed President Donald Trump to appoint Stephen Miran to the Fed's board, amidst calls for lower interest rates [7] Summary by Sections Resignation and Ethics Violations - Adriana Kugler announced her resignation effective August 8, 2023, after missing a policy meeting due to a "personal matter" [3] - The Fed's ethics officials did not certify Kugler's financial disclosures, which indicated potential violations of internal ethics rules [2][4] - Kugler's spouse made stock purchases without her knowledge, which were later divested, and she was deemed compliant with applicable laws [5][6] Impact on Federal Reserve - Kugler's resignation provided an opportunity for President Trump to fill a vacancy on the Fed's board, leading to the appointment of Stephen Miran, who has advocated for rapid interest rate cuts [7] - In response to previous trading violations by senior officials, the Fed implemented stricter investment and trading restrictions in 2022 to enhance public confidence [8][10]

Joining me is KPMG's chief economist Diane Swank and CNBC's Steve Leeman. Steve, let me begin with you. Is this a big departure from what we had seen after the last Fed meeting.>> Um, yeah, and by the way, Contessa, unfortunately, you blinked. And, uh, it's an even bigger departure because those probabilities are now down to 41%. Um, and I get that because it's only just been in a little bit that we've had that move.As you saw, uh, the 10-year yield rise higher. uh to around 414 and now the probabilities ha ...

Romania’s central bank pushed back against any expectations of an early start to interest rate cuts, signaling an extended period of caution due to a worsening inflation outlook https://t.co/hswLG8SGTj ...