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Peru Cuts Key Interest Rate to Three-Year Low of 4.25%
Yahoo Finance· 2025-09-11 23:13
Core Viewpoint - The Central Reserve Bank of Peru has cut interest rates to the lowest level since 2022, reducing the benchmark rate to 4.25% from 4.5% due to an unexpected drop in inflation [1][2]. Economic Indicators - Consumer prices in Peru rose by only 1.11% in August year-over-year, marking one of the slowest inflation rates among major emerging markets and nearing the lower end of the central bank's target range [3]. - Strong economic activity was reported, with a 4.5% expansion in June compared to the previous year, which may limit the potential for further rate cuts [4]. Central Bank's Position - The central bank indicated that the current interest rate is close to its estimated neutral level and forecasts inflation to be near the center of its target range by the end of the year [2]. - The key rate in Peru is now aligned with the lower end of the range set by the US Federal Reserve, which may create caution regarding further reductions in rates due to potential capital outflows [3].
Stock market today: Dow, S&P 500, Nasdaq mixed with Fed rate cut seen as done deal
Yahoo Finance· 2025-09-11 22:37
Core Viewpoint - US stocks exhibited mixed trading patterns as investors assessed the economy ahead of the Federal Reserve's upcoming interest rate decision [1] Group 1: Stock Market Performance - The Dow Jones Industrial Average fell by 0.4%, while the S&P 500 slipped below the flat line; in contrast, the Nasdaq Composite rose approximately 0.4% [2] - All three major indexes reached record highs on Thursday, with the Dow closing above 46,000 for the first time [2] Group 2: Economic Indicators - Recent jobs data indicated labor market weakness, with just over 20,000 jobs added last month and initial jobless claims reaching a near four-year high [3] - Inflation remains persistent, with consumer prices increasing last month, influenced by President Trump's tariffs [4] - The University of Michigan's consumer sentiment survey revealed a larger-than-expected decline in consumer sentiment for September, as concerns over tariffs grew [4] Group 3: Federal Reserve Expectations - Traders are anticipating a greater than 90% chance of a quarter-point interest rate cut during the Fed's September meeting, with around 75% expecting three cuts by year-end [5] - The lead-up to the Fed's meeting is expected to be quieter, with all major stock indexes on track for weekly gains exceeding 1% [5]
Stock market today: Dow slips, S&P 500 and Nasdaq waver with Fed rate cut seen as done deal
Yahoo Finance· 2025-09-11 22:37
Core Viewpoint - US stocks exhibited mixed performance as investors assessed the economy ahead of the Federal Reserve's upcoming interest rate decision [1] Group 1: Stock Market Performance - The Dow Jones Industrial Average fell by 0.4%, while the S&P 500 slipped below the flat line, and the Nasdaq Composite rose approximately 0.3% [2] - All three major indexes reached record highs on Thursday, with the Dow closing above 46,000 for the first time [2] Group 2: Economic Indicators - Recent jobs data indicated labor market weakness, with just over 20,000 jobs added last month and weekly initial jobless claims reaching a near four-year high [3] - Inflation remains persistent, with consumer prices increasing last month, influenced by President Trump's tariffs [3] Group 3: Consumer Sentiment and Expectations - The University of Michigan's consumer sentiment survey revealed a larger-than-expected decline in consumer sentiment for September, with long-run inflation expectations rising to 3.9% [4] - Investors are optimistic that inflation is manageable enough for the Fed to implement a rate cut next week [4] Group 4: Federal Reserve Rate Cut Expectations - Traders are anticipating a greater than 90% chance of a quarter-point cut during the Fed's September meeting, with around 75% expecting three cuts by the end of the year [5] - The lead-up to the Fed's meeting is expected to be quieter, with major stock indexes on track for weekly gains exceeding 1% [5]
JPMorgan's Jamie Dimon Says Economy Is 'Weakening' as Execs Sound Off Ahead of Fed Meeting
Yahoo Finance· 2025-09-11 20:56
Economic Overview - JPMorgan Chase CEO Jamie Dimon expressed concerns about a weakening economy, indicating uncertainty about whether it is heading towards a recession [3] - The Bureau of Labor Statistics reported that the U.S. economy added 911,000 fewer jobs in the 12 months through March 2025 than previously estimated, marking the largest preliminary adjustment on record since 2000 [3][4] Consumer Spending Trends - Despite economic concerns, consumer spending remains consistent across all income levels, although lower-income consumers are depleting their balances compared to pre-pandemic levels [4] - There is a significant disparity between higher-income and lower-income consumers, which poses ongoing challenges for the economy [4] Inflation and Price Changes - Grocery prices increased by 0.6% from July to August, the largest monthly rise since August 2022, contributing to broader inflation concerns [5] - The Consumer Price Index rose by 2.9% over the 12 months ending in August, the most significant increase since January [5] Market Expectations - The market anticipates that the Federal Reserve will cut interest rates for the first time since January during its upcoming meeting [2] - Dimon suggested that while a rate cut is likely, it may not have a significant impact on the economy [3]
Treasury Secretary Bessent met this week with Warsh, Lindsey and Bullard as Fed chief search continues
CNBC· 2025-09-11 18:41
Scott Bessent, US treasury secretary, in the Oval Office of the White House in Washington, DC, US, on Wednesday, Aug. 6, 2025.The search for the next Federal Reserve chair is continuing, with Treasury Secretary Scott Bessent taking point in meeting with several candidates on President Donald Trump's short list.In recent days, Bessent has met with former Fed officials Lawrence Lindsey, Kevin Warsh and James Bullard, a Treasury source told CNBC's Steve Liesman. Lindsey and Warsh both served as governors and B ...
We Still Don't Know Who Will Vote On Interest Rates Next Week
Yahoo Finance· 2025-09-11 16:05
Core Points - The Federal Open Market Committee is set to vote on lowering the Federal Reserve's key interest rate next Tuesday, with uncertainty surrounding the committee's composition [2][8] - Fed Governor Lisa Cook, who was fired by President Trump, has been reinstated by a court ruling, allowing her to continue her role while her case is ongoing [3] - President Trump is attempting to fill a vacancy on the Fed's board created by Adriana Kugler's resignation, with Stephen Miran nominated to replace her [4] Pressure for a Rate Cut - The control of the 12-person committee that sets the fed funds rate is at stake, which influences borrowing costs across various loans [5] - High interest rates have been criticized by President Trump, who argues they hinder economic growth and increase government interest payments on national debt [6] - Concerns have arisen among economists that the Fed may lower interest rates due to presidential pressure rather than economic necessity, raising questions about the Fed's independence [7]
Average rate on a 30-year mortgage falls to lowest level in nearly a year
Yahoo Finance· 2025-09-11 16:03
The average rate on a 30-year U.S. mortgage fell this week to its lowest level in nearly a year, reflecting a pullback in Treasury yields ahead of an expected interest rate cut from the Federal Reserve next week. The long-term rate eased to 6.35% from 6.5% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.2%. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate slipped to 5.5% from 5.6% last w ...
XRP dips as CPI rises to highest level since January
Yahoo Finance· 2025-09-11 15:42
The U.S. Consumer Price Index (CPI) rose 2.9% in the 12 months through August, as per expectations. In contrast, the figure rose 2.7% in July. CPI rose 0.4% month-over-month (MoM) in August, against the expected 0.3%. In August, Core CPI rose 3.1% YoY as per expectations. The figure rose 0.3% MoM as expected. The CPI data is the most common metric to measure inflation. CPI inflation is now at its highest level since January 2025, which means that Americans are really feeling the pinch. A Mobil gas sta ...
Instant View: US consumer prices rise more than expected, but a rate cut still coming
Yahoo Finance· 2025-09-11 12:56
NEW YORK (Reuters) - U.S. consumer prices rose more than expected in August while the annual increase in inflation was the largest in seven months, although the numbers will not prevent an interest rate cut from the Federal Reserve next week in the midst of a weakening labor market. The Consumer Price Index rose 0.4% last month after increasing 0.2% in July, the Labor Department's Bureau of Labor Statistics (BLS) said on Thursday. In the 12 months through August, the CPI advanced 2.9%, the largest increas ...
10-year Treasury yield falls to 4% then snaps back as traders assess inflation data
CNBC· 2025-09-11 12:55
Group 1 - The yield on the benchmark 10-year Treasury was last unchanged at 4.032%, after falling to 4% earlier in the session, while the 30-year Treasury yield increased to 4.688% [1] - The August consumer price index rose by a seasonally adjusted 0.4% for the month, with an annual inflation rate of 2.9%, aligning with economists' expectations [2] - Weekly jobless claims rose to a seasonally adjusted 263,000, exceeding the estimate of 235,000 and increasing by 27,000 from the previous period [2] Group 2 - The recent data indicates limited inflationary impact from the trade war and raises concerns about a weakening labor market, suggesting a potential 25 basis point interest rate cut next week [3] - A surprise decline in the producer price index supports expectations for a Federal Reserve interest rate cut at the upcoming meeting on September 17, with wholesale prices falling by 0.1% month-on-month [3] - Markets are pricing in a September interest rate cut with a 94% probability of a quarter-point cut and a 6% chance of a half-point cut [4]