December 13, 2025 12:11 AM GMT Global Macro Commentary | Global December 12: The Fed Twist President Trump considers both Warsh and Hassett for next Fed chair, would like to be consulted on interest rates; Goolsbee's dissent more dovish than expected; Japan MoF Primary Dealer meeting hints at reduced long-end issuance, but more front-end; DXY at 98.40 (+0.1%); US 10y at 4.19 (+2.7bp). Rates accelerate their steepening amid developments in Fed leadership while risk assets sell off on AI financing concerns. D ...

Confidence among Japan’s large manufacturers rose to the highest level in four years, reinforcing market expectations for the BOJ to raise interest rates this week https://t.co/EU43X1XLL5 ...

Market Trends - Despite Donald Trump's trade actions since April, the American economy has remained stable [1] - Long-duration bond interest rates have shown surprising stability [1]

Group 1 - Federal Reserve Chairman Jerome Powell aims to leave the economy in good shape before his term ends in May 2026, focusing on controlling inflation and maintaining a strong labor market [1][2][4] - Powell has not indicated whether he will remain on the Federal Reserve Board of Governors after his term, emphasizing his focus on his current responsibilities [4] - The question of succession is significant as President Trump considers potential candidates for the next Fed chair, with Kevin Warsh and Kevin Hassett being the leading options [6][8] Group 2 - Trump expressed his desire for the next Fed chair to be honest about interest rates, stating that the U.S. should have the lowest rates in the world [8]

Artificial intelligence is all the talk of the town, including with Chair Powell in his decision this week. Uh, how can the Fed understand AI well enough to know what that will do to, for example, productivity, which the chair talked about. >> Well, I don't think any of us, if we're honest, know when I talk to uh business people in California, they're extremely optimistic.Every CEO is optimistic. Some others are more der among economists. Honestly, I think there's every reason to believe generative AI could ...

Buckle up, kiddos. And keep your wallets and portfolios close. The Federal Reserve heads into 2026 swirling in a messy mix of economic pressures and political uncertainties. While the actual impact on interest rates remains to be seen, there is little doubt the takeaways from the December meeting of the Federal Open Market Committee are ripe with concerns about the turgid tensions in inflation rates and the job market. Plus, there’s the Shakespearean drama engulfing the replacement of Jerome Powell when ...

Interest rates should be closer to 2.5% ...

分组1 - The Biden administration's Department of Justice allegedly attempted to bribe Democratic representative Henry Quayar, who claims there was no evidence of a quid pro quo [1] - Quayar has been vocal about the issues related to the open border under Biden's leadership, which he believes has led to increased crime and safety concerns in his district [1] - The political landscape in Quayar's district is shifting, with Republicans aiming to gain ground, especially after Trump's recent pardon announcement [1] 分组2 - Senate Majority Leader John Thun criticized the Democrats' healthcare plan, suggesting it prioritizes political issues over genuine healthcare reform, as Obamacare subsidies are set to expire [2] - The House is expected to introduce a healthcare plan that may include income limits and anti-fraud measures, as Republicans seek to address healthcare affordability [2] - The conversation around extending Obamacare subsidies is complicated, with concerns about the impact on premiums and the need for a new open enrollment period [2] 分组3 - The SBA Fraud Enforcement Extension Act aims to extend the statute of limitations for COVID loan fraud investigations by an additional five years, addressing an estimated $200 billion in fraud [3] - There is a call for stronger federal safeguards to prevent fraud in state-administered federal programs, highlighting the need for accountability in the use of federal funds [3] - The focus on fraud, waste, and abuse is a priority for Republicans, who are advocating for better tracking and management of federal funds [3] 分组4 - The Federal Reserve is under scrutiny for perceived partisanship, with calls for it to return to a nonpartisan focus on monetary policy and bank regulation [4][5] - Concerns have been raised about the Fed's handling of interest rates and its communication strategies, particularly in relation to political events [4][5] - The Fed's effectiveness in forecasting economic conditions and managing inflation is being questioned, with suggestions for a reevaluation of its research priorities and personnel [4][5] 分组5 - The conversation around AI and job displacement is ongoing, with industry leaders suggesting that while AI may create efficiencies, it will not lead to massive job losses in the immediate future [38][39] - Companies are investing heavily in AI technologies, with expectations of significant returns on investment as efficiencies improve across various sectors [38][39] - The importance of critical thinking and skill development is emphasized as a way for workers to adapt to changes brought about by AI [38][39]

Core Views - The Federal Reserve's policy committee members expressed differing opinions on interest rates, reflecting internal divisions and the complexity of balancing inflation control with employment stability [1][5][8] Interest Rate Perspectives - Beth Hammack advocates for maintaining higher interest rates longer to combat inflation above the 2% target [2][6] - Austan Goolsbee believes rates could significantly decrease next year but opposed the recent rate cut due to insufficient data [2][10] - Anna Paulson perceives current interest rate policy as restrictive and prioritizes concerns about the labor market over inflation [7][8] Economic Implications - The Fed's challenge lies in determining whether current interest rates are "restrictive" or "neutral," with Hammack suggesting a preference for a slightly more restrictive stance to pressure inflation [6][8] - The job market is under strain, partly due to tariff-related disruptions, raising concerns about potential unemployment waves [5][8] Recent Developments - The comments from Fed officials followed a "blackout period" where public discussions on interest rates were restricted, highlighting the ongoing debate within the committee [3] - Goolsbee's dissent during the recent vote to cut rates indicates a split in the committee's approach, with some members advocating for a cautious stance until more economic data is available [9][10]

Last night, we got this confusing set of numbers from RH, the high-end homegoods retailer that used to be known as Restoration Hardware. This story's been a bit of a roller coaster for years. Four or five years ago, CEO Gary Freeman laid out some grandio sooie generous expansion plans.He wanted to turn RH into a fun, full lifestyle brand with restaurants, hotels, yachts, and even a utopian real estate development. In Aspen, the stock soared to the mid700s at its peak in August of 2021 as its feet became fas ...