Citadel CEO Ken Griffin expects the U.S. Federal Reserve to cut interest rates one more time this year, he said on Thursday in a CNBC interview. ...

Economic data has been stronger than expected and several voting members of Federal Reserve's interest-rate committee have expressed caution about easing. ...

Market Overview - Bitcoin is currently priced at $111,336, experiencing a decline of 1.8% in the last 24 hours and 5.4% over the past week [1] - There is skepticism among users of Myriad regarding Bitcoin reaching $125,000 soon, with 61% predicting a drop to $105,000 before hitting an all-time high [2] Economic Indicators - The upcoming PCE print is crucial as it serves as the Fed's inflation gauge, with expectations of a year-over-year reading between 2.7% and 2.9% [3] - Economists predict the core personal consumption expenditures will be on the higher end at 2.99% according to estimates from the Federal Reserve Bank of Cleveland [4] Federal Reserve Expectations - Investors currently see an 83.4% chance of the Fed lowering interest rates at the next FOMC meeting, with the likelihood of rates remaining unchanged increasing from 8.1% to 16.6% in the past week [5] - The market anticipates a high inflation number, yet digital assets are under pressure, indicating a potential disconnect [5] Market Sentiment and Liquidations - Recent declines in crypto sentiment and prices have led to significant liquidations, totaling over $442 million, particularly affecting Bitcoin, Ethereum, and Solana [5] - There is a noted selling pressure between $115,000 and $119,000, suggesting profit-taking among traders who believe the bull run may be concluding [6]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Inflationary pressures continue to mount, reemerging as the top concern among economists and market watchers, who place the blame squarely on President Donald Trump’s trade and tariff policies. Inflationary Risks ‘Are Rising’ On Tuesday, The Kobeissi Letter warned in a post on X that “Inflation risks are rising,” noting that “72% of CPI components are now surging faster than the Fed's 2% target,” which it ...

By Sinéad Carew and Marc Jones NEW YORK/ LONDON (Reuters) -MSCI's global equities gauge lost ground while the dollar rose as investors worried that Thursday's surprisingly strong U.S. economic data would make the Federal Reserve more cautious about cutting interest rates. U.S. Treasury yields also rose after the Commerce Department's Bureau of Economic Analysis said the U.S. economy grew faster than previously thought in the second quarter, pumped up by an ebb in imports and a pickup in consumer spending ...

By Stella Qiu SYDNEY (Reuters) -Australian consumer prices rose at the fastest annual pace in a year in August after a hot July, suggesting some upside to inflation that prompted markets to pare back the chances of imminent policy easing. The Australian dollar rose 0.3% to $0.6619, while three-year government bond futures fell 7 ticks to 96.45, the lowest in three weeks. Investors doubled down on bets that the Reserve Bank of Australia will skip a move in interest rates next week given the recent flow o ...

Core Viewpoint - The Federal Reserve has lowered interest rates for the first time in months due to a weakening labor market, despite ongoing inflation concerns [1][2]. Group 1: Interest Rate Changes - The Federal Reserve's policymaking panel voted 11-1 to lower interest rates by a quarter-point, changing the range from 4.25%-4.5% to 4%-4.25% [2][3]. - Investors are anticipating a 91.9% probability that the Fed will further reduce rates by at least a quarter-point to between 3.75% and 4% on October 29 [5]. Group 2: Labor Market Insights - The U.S. labor market is experiencing a "marked slowdown" in both supply and demand, with unemployment rising to 4.3% in August, which was higher than expected [3][6]. - Fed Governor Michelle Bowman expressed concerns that the labor market could enter a "precarious phase," indicating potential for sudden deterioration [3]. Group 3: Inflation Outlook - Powell noted that "near-term risks" to inflation are "tilted to the upside," while uncertainty around inflation remains high [2][3]. - Wall Street anticipates annual inflation to reach 3% in August, a slight increase from July, with headline PCE inflation expected to rise to 2.8% from 2.6% [4]. Group 4: Political Context - The Federal Reserve has faced criticism from President Trump, who has urged for more aggressive rate cuts [6]. - The Fed has planned for up to two additional 25-basis-point reductions by the end of the year, aiming to stabilize inflation around 2% while maintaining full employment [6].

Group 1 - US Treasury bonds are on track for their first increase in five trading days, as traders anticipate upcoming speeches from multiple Federal Reserve officials that may signal further interest rate cuts [1] - The yields on US Treasuries across various maturities are generally declining, with the 10-year Treasury yield falling by 2 basis points to 4.13% [1] - Market uncertainty regarding the Federal Reserve's future policy direction is high, leading investors to favor assets that are likely to yield returns even if economic fluctuations hinder rate cut plans [1] Group 2 - Following the recent interest rate cut described by Fed Chair Powell as a "risk management" measure, conflicting signals have emerged from Fed officials regarding the timing and possibility of further easing [4] - Market focus has shifted to upcoming economic indicators, including the Purchasing Managers' Index (PMI) and the Richmond Fed Manufacturing Index, as investors seek evidence of a weakening US economy [4] - The Chief Investment Officer of Marathon Asset Management anticipates a further 125 basis points of rate cuts, emphasizing that the Fed has a long way to go on the path of easing [4]

Economic Outlook - The U.S. economy is projected to grow by 1.8% in 2023, an increase from the previous forecast of 1.6%, and is expected to grow by 1.5% in 2024 [1] - The global economy is expected to grow by 3.2% in 2023, up from 2.9% previously forecasted, with a stable growth forecast of 2.9% for 2024 [1] Federal Reserve Insights - U.S. rate futures indicate an 89.8% probability of a 25 basis point rate cut at the next FOMC meeting [2] - Fed officials express differing views on interest rate cuts, with some advocating for aggressive cuts to protect the labor market while others caution against further reductions due to inflation concerns [3] Stock Market Performance - Wall Street's main indexes closed higher, with the S&P 500, Dow, and Nasdaq 100 reaching new record highs [4] - Nvidia announced plans to invest up to $100 billion in OpenAI, leading to a more than 3% increase in its stock [4] - Teradyne's stock surged over 12% after a price target upgrade, while Applied Materials rose over 5% following an upgrade from Morgan Stanley [4] Economic Data and Corporate Earnings - Investors are focused on upcoming speeches from Fed officials and preliminary U.S. purchasing managers' surveys, with expectations for the September S&P Global Manufacturing PMI at 52.2 and Services PMI at 54.0 [6] - The U.S. Richmond Fed Manufacturing Index is anticipated to improve to -5 in September from -7 [7] - Micron Technology and AutoZone are set to release quarterly results today [7] European Market Developments - The Euro Stoxx 50 Index rose by 0.64% as positive PMI data supported market sentiment [8] - Eurozone's Composite PMI for September was reported at 51.2, exceeding expectations, while Manufacturing PMI was weaker at 49.5 [10] China Market Updates - China's Shanghai Composite Index closed slightly lower, with bank stocks providing some support against profit-taking in the tech sector [12] - The People's Bank of China plans to maintain liquidity and support economic recovery, while a new financing instrument is expected to direct 500 billion yuan ($70.3 billion) to stimulate investment [12]

Group 1: U.S. Dollar Performance - The U.S. dollar remained stable against major currencies, with a slight decline of 0.11% against the Swiss franc and a decrease of 0.08% against the Japanese yen [1][6] - The dollar index, which measures the dollar against a basket of currencies, was little changed at 97.25 [4] Group 2: Federal Reserve Commentary - Federal Reserve Chair Jerome Powell emphasized the need to balance high inflation risks with a weakening job market in future interest rate decisions [2] - Fed Vice Chair Michelle Bowman indicated that the Fed may need to accelerate rate cuts if demand weakens and layoffs occur [3] Group 3: Market Reactions and Expectations - Money markets are pricing in a nearly 90% chance of a rate cut in October, slightly down from 92% the previous day [5] - The Swedish krona appreciated by 0.19% against the dollar following a hawkish 25-basis-point rate cut by the Riksbank, which analysts noted was somewhat surprising given the meeting guidance [6]