The Bank of England cut interest rates to 3.75%, the lowest level in almost three years@lizzzburden explains what the knife edge vote signals for 2026 https://t.co/P684I3ke6u https://t.co/ovWK64VPxS ...

Stocks rallied at the open, bouncing after a sharp selloff Wednesday, as a cooler-than-expected inflation report lifted hopes that the Federal Reserve would cut interest rates further. An optimistic outlook in the tech sector also lifted sentiment https://t.co/bbWQanC5KA ...

The governing council today decided to keep the three key ECB interest rates unchanged. Our updated assessment reconfirms that inflation should stabilize at our 2% target in the medium-term. The new Euro system staff projections show headline inflation averaging 2.1% in 25, 1.9% in 26, 1.8% 8% in 28, sorry, 1.8% in 27 and 2% in 28. For inflation, excluding energy and food, staff project an average of 2.4% in 25, 2.2% in 26, 1.9% in 27, and 2% in 28.Inflation has been revised up for 2026, mainly because staf ...

Let's bring in our panel. Joining us now, Brookings Institution Economic Studies senior fellow Wendy Edelberg and American Institute for Economic Research Monetary Economics Managing Director Lydia Mashburn Newman. Welcome to you both.Uh Wendy, I mean, I know you haven't kind of been able to dig into the guts of this report, but it seems like a pretty benign reading. Uh how do you feel about it. Yeah, it's frustrating because they haven't even posted the information that I would need to to really um parse a ...

Inflation came in way lower than expectations, which means the Fed should have cut interest rates by 50 basis points. ...

Inflation eased its grip on the American consumer in November, with prices rising 2.7% from a year earlier, the Labor Department said in a Dec. 18 report. The annual inflation rate had crept as high as 3% in September. The slightly lower rate for November reflected smaller price increases for gasoline and new vehicles, among other items. Core inflation, which excludes volatile food and energy items and is watched closely by the Federal Reserve, came in at 2.6% in November – the lowest rate since 2021. ...

Economic Overview - US prices rose by 2.7% year-over-year as of November, down from 3% in September and below economists' expectations of 3.1% [1][2] - The longest federal government shutdown in US history has affected the collection of key economic data, resulting in no inflation report for October and limited data for November [2] Inflation and Employment - Price growth, which peaked at 9.1% in June 2022, has since retreated but remains above standard levels, with concerns about affordability persisting [3][5] - The unemployment rate rose to 4.6% in November, the highest in four years, although the economy added 64,000 jobs, exceeding economists' expectations [4] Federal Reserve Actions - The Federal Reserve has reduced interest rates three times this year but has resisted deeper cuts despite pressure from the Trump administration [8] - Current interest rates are between 3.5% and 3.75%, with Fed officials indicating a potential pause in further rate cuts as inflation and unemployment appear to be stabilizing [9] Public Sentiment and Political Implications - Recent polls indicate that Americans are increasingly blaming Trump for rising prices, with his net approval on economic issues declining [7] - The Yale Budget Lab estimates that Trump's tariffs will increase costs by $1,700 for the average American household, despite some exemptions [6]

JUST IN: 🇬🇧 Bank of England cuts interest rates to 3.75% - the lowest level since early 2023 🚀 https://t.co/tOy54FWNPR ...

The Bank of England cut its policy rate by 25 basis points to 3.75% as of December 18, in line with expectations, from a previous level of 4.00%. The decision met market forecasts, following the bank’s earlier pause in its quarterly rate-cut cycle that had been in place since August 2024. ...

Economic Outlook & Inflation - Vanguard expects a mixed CPI picture with some components trending down, but pressures remain due to tariffs and food prices [2] - Tariffs and a less restrictive Fed than perceived could keep inflation above 2% [10] - The focus for 2026 is expected to shift from inflation to growth [11] Labor Market - The US labor market has effectively stalled and is in a holding pattern due to supply and demand factors [5][6] - Acceleration in retirements and slowed immigration have pushed down the break-even rate [7] - Job growth is strong in occupations with high AI exposure [7] - Younger worker job growth is at historical levels, contradicting some narratives [8] Investment & Growth - AI-related investment will be the ultimate factor influencing the US economy, particularly in the back half of the year, posing an upside risk [4][5] - Investment spending and business confidence will determine the risk to the economy in 2026 [9] - Higher productivity and innovation rates could lead to higher growth without higher rates, similar to the late 1990s [12][13] - A 4% 10-year Treasury yield is possible with stable inflation and a 2.5-3% GDP growth due to increased capacity, not just demand [13][14]