NEW YORK (AP) — Financial markets churned on Friday as investors tried to figure out what President Donald Trump’s new nominee to lead the Federal Reserve will mean for interest rates. U.S. stocks fell, with the S&P 500 down 0.4% after sinking as much as 1.1% earlier in the day. The Dow Jones Industrial Average dropped 179 points, or 0.4%, and the Nasdaq composite lost 0.9%. The value of the U.S. dollar rallied, but only after swiveling a couple times following Trump’s nomination of Kevin Warsh. And som ...

Core Viewpoint - The U.S. bond market appears to be relatively unconcerned about President Trump's attempts to influence the Federal Reserve's monetary policy decisions [1] Group 1 - The bond market's current sentiment indicates a lack of anxiety regarding potential changes in monetary policy due to political pressures [1]

The point of of uh independence is not to protect policy makers or anything like that. It just is that every advanced economy democracy in the world has come around to this common practice. It's just an institutional arrangement that is that has served the people well and that is to to have a separation between uh to not have direct elected official control over the setting of monetary policy.And the reason is that monetary policy can be used, you know, through an election cycle to to affect the economy in ...

US Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a Federal Open Market Committee (FOMC) meeting in Washington, DC, on Dec. 10, 2025.Federal Reserve Chair Jerome Powell on Wednesday offered his first explanation into his controversial decision to attend Fed Governor Lisa Cook's Supreme Court hearing, sharing a belief that its the most important legal case the central bank has ever seen because of its impact on independence."That case is perhaps the most important lega ...

RT Bloomberg Opinion (@opinion)“This is a pretty incredible moment for the Fed and Fed independence,” @keds_economist says.Tune in for live analysis: https://t.co/YmtYSFDa1d ...

Core Viewpoint - The independence of the U.S. Federal Reserve is under threat, contributing to global economic uncertainty, as highlighted by the Bank of Canada Governor Tiff Macklem [1][3]. Group 1: Comments on the Federal Reserve - U.S. President Donald Trump has criticized Fed Chairman Jerome Powell and is attempting to remove Fed governor Lisa Cook, while the Department of Justice has threatened Powell with a criminal indictment [2]. - Macklem emphasized that the Federal Reserve is the most important central bank globally, and its loss of independence would have widespread negative effects, particularly on Canada due to its economic ties with the U.S. [3][4]. Group 2: Importance of Central Bank Independence - Macklem stated that maintaining central bank independence allows for difficult decisions that ultimately benefit citizens, and he supports Powell's evidence-based leadership [4]. - Bank of Canada senior deputy governor Carolyn Rogers noted that a strong Federal Reserve benefits nearly every economy by stabilizing markets and inflation, contributing to predictability and reduced volatility in interest rates [5].

Core Viewpoint - The upcoming week is significant for the financial markets, with the first Federal Reserve meeting of 2026 and the Q4 earnings results from major tech companies, known as the "Magnificent Seven" [2][3][6]. Group 1: Federal Reserve Meeting - The Federal Reserve is expected to hold interest rates steady during its first meeting of 2026, with a focus on maintaining its independence amid political pressures [3][4]. - Fed Chair Jerome Powell will hold a press conference, marking the first since the Trump administration's investigation into the Fed's refurbishment costs [4][5]. Group 2: Q4 Earnings from Magnificent Seven - Four out of the seven major U.S. tech companies, including Microsoft, Apple, Meta, and Tesla, will report their Q4 earnings this week, alongside South Korea's Samsung [6]. - Companies are under pressure to not only meet but exceed earnings forecasts and provide strong guidance to justify their high valuations [7]. Group 3: Yen and Japanese Elections - Japan is preparing for a snap election on February 8, with Prime Minister Sanae Takaichi's policies affecting the yen and government bonds [8]. - Analysts express concerns over the yen's stability, particularly in light of Japan's high debt-to-GDP ratio of 221% [9]. Group 4: Emerging Market Central Bank Meetings - Several emerging market central banks are meeting, with Brazil and Chile expected to maintain their current interest rates, while Colombia is anticipated to cut rates [10][11][12]. - Ghana is expected to make a significant rate cut of 300 basis points due to currency instability [12]. Group 5: Greenland Stabilization - The geopolitical situation regarding Greenland is stabilizing, which could positively impact global stock markets and reduce gold prices, currently above $5,000 an ounce [13][14]. Group 6: Key Global Macro Events - Key economic indicators such as Durable Goods Orders and the Producer Price Index (PPI) will be released, with expectations of a slight decrease in initial jobless claims [15][16][17].

Core Viewpoint - The rising yen has negatively impacted the dollar, which is near a four-month low due to various domestic issues, including a potential U.S. government shutdown and political instability under President Trump [1][11]. Currency Market Dynamics - The yen has stabilized around the 153-154 per dollar level, with the latest rate at 154.24 per dollar, recovering from a low of 159.23 [2][11]. - The dollar has fallen more than 1% against a basket of currencies this year, currently at 97.05, having reached a low of 96.808 [8][11]. - The euro is steady at $1.1878, while sterling is at $1.3678, both having reached higher peaks recently [7][11]. Federal Reserve and Political Influence - The Federal Reserve is set to begin a two-day policy meeting, overshadowed by ongoing political issues, including a criminal investigation involving Chair Jerome Powell [9][11]. - Concerns about the independence of the Federal Reserve are growing, particularly if Powell resigns, which could negatively affect the dollar [10][11]. Intervention Speculation - There is speculation about a potential coordinated currency intervention by U.S. and Japanese authorities, which has made investors cautious about pushing the yen lower [6][11]. - Analysts suggest that while the market is currently wary, renewed attempts to test Japanese authorities' resolve may occur if no intervention happens soon [6][11].

The Federal Reserve will meet on Wednesday, Jan. 28, to decide whether to cut interest rates or hold steady. We speak to Fed insiders about what investors should be watching. 0:00 Fed expected to hold rates 2:00 Fed rate watch and Fed independence 7:29: Gov't shutdown odds, Fed FOMC 12:49 Stocks market 17:44 Can the market do without Fed rate cuts? About Yahoo Finance: Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, a ...

Federal Reserve Meeting Insights - The Federal Reserve is widely expected to hold interest rates steady, with no new economic projections anticipated [1][2] - Fed Chair Jerome Powell's press conference is anticipated to focus on the neutral interest rate range and the duration of the Fed's hold on rates before potential cuts [2][3] - Recent comments from policymakers indicate that the current policy is in a good place, allowing for flexibility to adjust if economic risks change [3] Dissenting Opinions - There is speculation about potential dissents from Fed Governors, particularly Steven Myron and Michelle Bowman, who have expressed concerns about the job market and advocate for continued rate cuts [4][5] - The presence of dissenting opinions may provide insight into the committee's positioning as it approaches a potential leadership change [28][29] Economic Outlook - The bond market does not expect a rate cut until late July, indicating a cautious approach to monetary policy [6] - The economy is showing relative stability, with inflation around 2.7%, suggesting that the Fed may choose to wait before making further adjustments [15] - The first quarter of the year is expected to show a GDP hit of about 0.5% to 1.5%, which could impact earnings but is not expected to lead to drastic market changes [36][37] Leadership Speculation - There is ongoing speculation regarding the next Fed chair, with candidates like Rick Reer gaining attention in betting markets [31][32] - The choice of the next Fed chair may not significantly alter the overall direction of monetary policy, as most candidates support a more aggressive rate-cutting approach [33][34] Market Reactions - The market is currently pricing in expectations for two rate cuts, with the first anticipated in June when a new Fed chair may be in place [52] - The overall sentiment suggests that while rate cuts are expected, they may not be necessary unless significant economic changes occur [53]