But our next guest says based on the data the Fed should not cut rates next week. Torson SLock is the chief economist over Apollo Global Management. Torston, thanks for being with us right now.Take us through the case as to why the Fed needs to hold steady. >> Well, if you look at the incoming data, for example, we had a lot of discussions here now about a month ago of course of Triricolor and First Brands and whether the credit cycle was about to get worse. But if you look at the actual numbers for default ...

The Canadian dollar rose the most since May and yields on the nation’s debt jumped as surprisingly strong employment data triggered bets that the Bank of Canada will raise interest rates next year https://t.co/6r5DxolH6e ...

Core Viewpoint - The Federal Reserve's management of interest rates is crucial for balancing economic stimulation and inflation control, impacting consumer spending and stock prices [3]. Interest Rate Management - The Fed adjusts the federal funds rate to influence inflation and unemployment, affecting banks' cost of capital and subsequently the rates consumers pay on loans [2]. - Stable interest rates typically do not lead to significant stock price changes, but investor expectations can cause volatility if they diverge from the Fed's decisions [4][5]. Economic Implications - Leaving interest rates unchanged indicates a strong economy, but there is a risk of inflation returning, which could negatively impact stock prices [3]. - Corporate profits, influenced by interest rates and consumer spending, are the primary drivers of stock prices [9]. Portfolio Adjustments - Investors should reassess their portfolios based on current interest rate expectations and economic conditions, considering long-term strategies over short-term adjustments [6][7][8]. - Maintaining a steady portfolio through economic cycles can be beneficial if the current strategy is effective [8].

30-year mortgage rates have dropped to their lowest level since October 2024. With the Fed expected to act soon, is it smarter to wait or lock in your rate now? https://t.co/kzNzq2rVuJ ...

Core Viewpoint - Wall Street executives and corporate CEOs are making a final attempt to dissuade President Trump from appointing Kevin Hassett as the next chairman of the Federal Reserve, but they are not optimistic about their chances of success [1][2]. Group 1: Hassett's Qualifications and Support - Hassett is viewed favorably by Trump, who has a strong preference for him due to their long-standing relationship, with Hassett previously serving as head of the Council of Economic Advisers [2][3]. - He has a PhD in economics from the University of Pennsylvania and has experience in think tanks and the Federal Reserve [3]. Group 2: Concerns from Wall Street - Critics argue that Hassett lacks the independence that bond markets expect from a Fed chair, viewing him as too political and too willing to align with Trump's economic agenda [4][5]. - There are concerns that Hassett may prioritize growth and lower interest rates over controlling inflation, which is a critical aspect of the Fed's dual mandate [5][6]. - His credibility with the Federal Reserve staff is questioned, as he is perceived as a pawn of the White House, which could complicate his ability to implement necessary interest rate cuts [6][19]. Group 3: Potential Market Reactions - A significant reduction in short-term interest rates, as desired by Trump, could be interpreted by bond traders as inflationary, potentially leading to higher long-term interest rates [8]. - The impact of rising interest rates could make mortgages and loans less affordable, which may negatively affect the stock market, reminiscent of past market reactions to political decisions [10].

Chile’s consumer prices rose in line with expectations in the final inflation report before the central bank’s December policy meeting, when it’s expected to cut rates for the second time this year https://t.co/aBe96T7U1E ...

Japan’s currency rose against the dollar after Bloomberg News reported that Bank of Japan officials are ready to raise interest rates this month, provided there’s no major shock to the economy or financial markets in the meantime https://t.co/2IkmqFk9ta ...

Bank of Japan officials are ready to raise rates at a policy meeting later this month, provided there’s no major shock to the economy or financial markets in the meantime, according to people familiar with the matter https://t.co/LrCbI8YfIi ...

Philippine inflation slowed in November, supporting another cut in benchmark interest rates as a graft scandal shattered consumer and investor confidence https://t.co/U66niVRpTX ...

Core Insights - The current inflation rate is 3.0%, which savings accounts need to exceed to maintain value [2][5] - The national average savings rate is significantly lower at 0.40%, with major banks offering rates as low as 0.01% [3] - High-yield savings accounts are available with rates between 4.15% and 5.00%, providing a viable option to combat inflation [6][14] Group 1: Inflation Impact on Savings - Inflation erodes purchasing power, meaning savings earning less than 3.0% are effectively losing value [2][8] - Even a 2% APY is insufficient against 3% inflation, leading to a decrease in real value [9] Group 2: High-Yield Savings Accounts - High-yield savings accounts can significantly outperform traditional bank accounts, helping savers keep ahead of inflation [6][10] - The best high-yield accounts have consistently outpaced inflation for over two years [7] Group 3: Certificates of Deposit (CDs) - CDs can lock in higher rates, currently offering up to 4.50% for short terms, which is advantageous in a declining interest rate environment [14] - Shifting part of savings into CDs can secure elevated returns against inflation while maintaining some liquidity in savings [13][14]