Core Insights - Fixed income ETFs, particularly Neuberger Berman Total Return Bond ETF (NBTR) and Neuberger Berman Short Duration Income ETF (NBSD), have shown decent performance in 2023, but past performance does not guarantee future results [1][5] - Investors in fixed income need to be agile and adaptable in 2026 due to changing Federal Reserve policies and economic conditions [2][4] Market Outlook - The future of interest rate cuts is uncertain, with inflation remaining stubborn and potential US tariff policies possibly increasing prices in 2026, indicating a shift towards structurally higher inflation [3][6] - The Federal Reserve is not expected to lower rates soon, but there is speculation about potential leadership changes that could influence future rate decisions [4][5] Investment Strategy - A flexible, diversified, and dynamic approach to bond investing is essential moving into 2026, as traditional passive fixed income funds may not perform as well [6][7] - Higher volatility in the fixed income market has created a wider performance gap, emphasizing the need for a global and flexible investment strategy [7]

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 ...

South Africa’s central bank resumes its easing cycle as it trimmed its inflation forecasts following the formal adoption of a 3% inflation target https://t.co/ciwrj6h4jh ...

Group 1 - The macroeconomic environment has shown improvement in several areas, particularly regarding tariffs, but inflation remains a persistent issue in the U.S. [2] - The upcoming quarters are expected to be challenging from a macroeconomic perspective, although a slight recovery is anticipated in 2026 and 2027 [2] - Client activity remains robust across various sectors, including wealth management, indicating strong engagement and interest [3]

Investors have been too hasty in casting off concerns over the stickiness of UK inflation, according to Bank of America Corp. strategists. https://t.co/dUHDc3Cl5h ...

A surprise uptick in Egyptian inflation has Wall Street divided on whether the time is right for the nation’s fifth interest-rate cut of 2025 https://t.co/iJ8TRzrELg ...

Australia’s labor market is too tight for inflation to settle within the central bank’s 2-3% target, Reserve Bank Assistant Governor Sarah Hunter said https://t.co/FdnwkQbmFd ...

Core Insights - A Federal Reserve rate cut in December is becoming less likely due to sharp divisions among committee members regarding future monetary policy [2][3][7] - The minutes from the recent policy committee meeting indicate that while some members support further rate cuts, many are inclined to maintain current rates to combat persistent inflation [5][4] Summary by Sections Federal Reserve's Decision-Making - The Federal Open Market Committee (FOMC) is facing a dilemma between lowering interest rates to support job growth and keeping them high to control inflation [2][7] - The chances of a rate cut in December have decreased from 50% to approximately 33% following the release of the meeting minutes [3][7] Economic Context - High inflation has persisted for five consecutive years, exceeding the Fed's target of a 2% annual rate, complicating the decision-making process [5][4] - The recent 43-day federal government shutdown has delayed key economic reports, further limiting the data available for FOMC members to consider [8][9] Member Opinions - Only one out of twelve FOMC members voted against lowering the fed funds rate, indicating a divided stance among members [5][9] - The minutes reveal that many members are becoming increasingly reluctant to cut rates due to ongoing inflation concerns [5][4]

Core Viewpoint - Economists advocate for a repo rate cut by the Reserve Bank of India (RBI) in December, citing record low consumer inflation and the potential for economic growth without significant inflation impact [10][11]. Economic Growth and Inflation Projections - Asia's No. 2 economy is expected to grow between 6.8% to 7% this fiscal year, with consumer inflation projected at 1.8% to 2% [10]. - For FY27, GDP growth is estimated to be between 6.5% to 7%, while inflation is anticipated to be in the range of 3.5% to 4% [2][10]. Policy Considerations - The RBI is likely to revise its inflation forecasts downwards and growth forecasts upwards due to the record low inflation of 0.25% in October, influenced by falling food prices and GST rationalization [6][11]. - The uncertainty surrounding a pending trade agreement with the US adds complexity to the RBI's policy decisions [8][11]. Empirical Evidence and Economic Advisory - Empirical evidence suggests that the costs of missed easing cycles are more detrimental than the costs associated with early easing, indicating that a rate cut now would minimize expected losses [3][10]. - Economists attending pre-policy consultations expressed that a rate cut would enhance growth without significantly affecting inflation [11].

Are housing starts predictive of inflation? In this episode of Stocks in Translation, Infrastructure Capital Advisors CEO Jay Hatfield joins host Jared Blikre and Yahoo Finance head of news Myles Udland to discuss the latest Wall Street news as well as strategies for investors in today’s bullish, tech-driven markets. The trio dig deeper into the Federal Reserve’s inflation targets, their impact over the housing markets, and whether a recession is on the horizon. Twice a week, Stocks In Translation cuts thro ...