Market Performance - The S&P 500 Index rose by +0.10%, while the Dow Jones Industrials Index fell by -0.52%, and the Nasdaq 100 Index increased by +0.37% on Monday [1] - December E-mini S&P futures rose by +0.09%, and December E-mini Nasdaq futures rose by +0.35% [1] AI and M&A Activity - US stocks were supported by optimism in AI following OpenAI's acquisition of $38 billion in AI computing power from Amazon [2] - Kimberly-Clark announced a $40 billion acquisition of Kenvue, the maker of Tylenol, involving both stock and cash [2] - Eaton agreed to acquire Boyd's thermal business for $9.5 billion, which is related to data centers [2] Federal Reserve Commentary - Fed Governor Stephen Miran expressed that current Fed policy is too restrictive and suggested that neutral policy is significantly below current levels [4] - Fed Governor Lisa Cook indicated that the risk of labor-market weakness outweighs the risk of increased inflation, but did not commit to an interest rate cut in December [5] - Chicago Fed President Austan Goolsbee expressed more concern about inflation than the job market, stating that interest rates could still decrease significantly, but should align with inflation trends [6] Economic Indicators - The October ISM manufacturing index fell by -0.4 points to 48.7, which was below expectations for a rise to 49.5, indicating continued contraction since March 2025 [7] - The October ISM prices paid index decreased by -3.9 points to 58.0, which was weaker than expectations of an increase to 62.5 [7]

All right, we got some breaking news from Washington Fed Governor Lisa Cook who is speaking in DC. Steve Leeman has those headlines. Steve.>> Uh, thanks Brian. The Olive for Fed policy continues to be somewhat confusing with Fed officials offering different forecasts from each other and even some officials taking both sides of the argument. Lisa Cook speaking in Washington said she supported the decision to cut rates last week.Uh, but says downside risks to employment are greater than upside risk to inflati ...

(Corrects headline to show Miran says policy too restrictive, rather than not restrictive) By Howard Schneider WASHINGTON (Reuters) -Federal Reserve officials on Monday continued pressing competing views of where the economy stands and the risks facing it, a debate set to intensify ahead of the U.S. central bank's next policy meeting and in the absence of data suspended due to the federal government shutdown. In an appearance on the Bloomberg Surveillance television program, Fed Governor Stephen Miran r ...

Core Viewpoint - Federal Reserve Governor Stephen Miran advocates for more aggressive interest rate cuts, arguing that current monetary policy is too restrictive and does not align with his optimistic outlook on inflation [1][2]. Summary by Sections Monetary Policy Stance - Miran believes that the Federal Reserve's current policy is overly restrictive, suggesting that the neutral rate is significantly lower than the current policy [1]. - He has consistently called for looser monetary policy, dissenting against the recent quarter-percentage point rate cuts in September and October, favoring half-point reductions instead [2]. Recent Rate Cuts - The Federal Reserve cut its benchmark rate by a quarter-point for the second consecutive month, bringing the target range to 3.75% to 4% [3]. - Fed Chair Jerome Powell indicated that another rate cut in December is uncertain, reflecting ongoing concerns about the labor market [3]. Inflation Concerns - Some Fed officials express worries that lowering rates too quickly could keep inflation elevated, with Chicago Fed President Austan Goolsbee prioritizing inflation concerns over labor market issues [4][5]. - San Francisco Fed chief Mary Daly emphasized the need to balance inflation and employment mandates while considering future rate cuts [5]. Credit Market Insights - Miran pointed out recent stress in credit markets as a sign that monetary policy may still be too tight, indicating potential underlying issues that have been previously overlooked [5]. - He noted that the emergence of uncorrelated credit problems suggests a need for reevaluation of the current monetary stance [6].

Core Viewpoint - The Federal Reserve is experiencing a debate among its officials regarding the current state of the economy and the associated risks, which is expected to intensify ahead of the upcoming policy meeting due to a lack of new data caused by the federal government shutdown [1] Group 1: Interest Rate Perspectives - Fed Governor Stephen Miran advocates for deeper interest rate cuts, arguing that the buoyant stock and corporate credit markets do not indicate that monetary policy is too loose [2][3] - Miran expressed dissent against the recent decision to cut rates by a quarter percentage point, favoring a half-percentage-point reduction instead [3] - He believes that rising equity prices and narrow corporate credit spreads do not necessarily reflect the stance of monetary policy, especially as interest-sensitive sectors like housing show weakness [4] Group 2: Inflation Concerns - Chicago Fed President Austan Goolsbee is cautious about further rate cuts while inflation remains significantly above the Fed's 2% target, with expectations of acceleration through 2025 [5] - Goolsbee, a voting member of the Fed's policy committee, supported the recent rate cut but remains undecided about future cuts due to ongoing inflation concerns [6] - The contrasting views of Miran and Goolsbee highlight a significant divide among Fed officials regarding monetary policy direction, despite both having extensive economic backgrounds [6]

By Michael S. Derby (Reuters) -Federal Reserve Bank of Chicago President Austan Goolsbee said on Monday he's in no hurry to cut interest rates again with inflation still too far above the central bank's 2% target. "I'm not decided going into the December meeting" and "my threshold for cutting is a little bit higher than it was at the last two meetings," Goolsbee said in a Yahoo Finance interview. "I am nervous about the inflation side of the ledger, where you've seen inflation above the target for four a ...

Core Insights - Digital asset investment products experienced significant outflows of $360 million last week, primarily influenced by Federal Reserve Chair Jerome Powell's comments on interest rate cuts [1][2] - Bitcoin ETFs faced the largest withdrawals, losing $946 million, while Solana saw a record inflow of $421 million, indicating a divergence in investor sentiment [1][5] Digital Asset Market Overview - Powell's hawkish stance led to market uncertainty, with investors pulling $439 million from crypto products, predominantly from US investors [2][3] - The lack of major US economic data releases contributed to the overall market volatility during the week [3] Solana's Performance - Solana distinguished itself with $421 million in inflows, marking the second-highest weekly total for the asset [5] - The inflow surge was driven by the launch of new US Solana ETFs, including Bitwise's BSOL, which attracted record inflows during its initial trading week [6][7] - Year-to-date, Solana has accumulated $3.3 billion in inflows, solidifying its position as one of the fastest-growing digital assets among institutional investors [8]

The Federal Reserve cut interest rates for the second time in 2025 last week, though one member of the central bank's monetary policy committee voted against cutting rates, citing concerns over inflation. Policymakers on the Federal Open Market Committee (FOMC), which guides the Fed's monetary policy, voted 10-2 in favor of lowering the benchmark federal funds rate by 25 basis points to a target range of 3.75% to 4%. One dissenter, Fed Governor Stephen Miran, called for a larger 50-basis-point cut.The other ...

WASHINGTON (Reuters) -Federal Reserve Governor Stephen Miran said on Monday it is wrong to put too much emphasis on the strength of equity and corporate credit markets in assessing monetary policy that he feels remains too restrictive and is heightening the risk of a downturn. "Financial markets are driven by a lot of things, not just monetary policy," Miran said on the Bloomberg Surveillance television program, in explaining why he dissented last week against a quarter-percentage-point rate cut in favor ...

Group 1: Pfizer's Antitrust Lawsuit - Pfizer has filed a second federal antitrust lawsuit against Metsera and Novo Nordisk, claiming that Novo Nordisk's proposal to acquire Metsera is an "anticompetitive action" aimed at maintaining its dominance in the GLP-1 treatment market [2][3] - The lawsuit alleges that the proposed acquisition, valued at up to $8.5 billion or $9 billion, violates Section 7 of the Clayton Act and Sections 1 and 2 of the Sherman Act [2][3] - Pfizer is seeking remedies including injunctive relief to prevent the deal from proceeding, following its own $7.3 billion proposed acquisition of Metsera, which has received early antitrust clearance from the FTC [3] Group 2: Eaton's Acquisition in AI Data Center Market - Eaton has announced its agreement to acquire Boyd Thermal for $9.5 billion, targeting the growing AI data center market [4] - Boyd Thermal specializes in liquid cooling technology, which is essential for managing heat in advanced AI infrastructure, and is projected to achieve sales of $1.7 billion in 2026 [5] - The acquisition is expected to enhance Eaton's data center portfolio and become accretive to its adjusted earnings in the second year post-closing [5] Group 3: Federal Reserve's Monetary Policy - Federal Reserve Governor Miran has expressed concerns that the current monetary policy is too restrictive, advocating for a series of 50 basis point interest rate cuts to mitigate risks to the labor market [6][7] - Miran highlighted the importance of a forward-looking approach in policy decisions, suggesting that being overly data-dependent can lead to backward-looking policies [7] Group 4: Global Economic Developments - Alphabet has initiated an eight-part US dollar bond sale, indicating ongoing capital market activity from the tech giant [10] - In Germany, auto parts supplier ZF is preparing for furlough measures and has announced plans to cut up to 14,000 jobs by 2028 due to supply chain challenges [11] - In the commodities market, CME Group's gold prices have consolidated below the 20-day simple moving average, currently near $4,095/oz [13]