Traders are fully pricing two interest-rate hikes from the European Central Bank this year, as an attack on Iranian energy assets revived fears of an inflation spike. https://t.co/wDbpgvGHeu ...

A sharp swing in European money markets from bets on central bank interest-rate cuts to hikes has caught traders off guard, forcing some to exit options at hefty losses https://t.co/Ac4h2iAIm1 ...

Japan Post Insurance plans to sell holdings of lower-yielding government bonds and replace them with higher-yielding debt on expectations for further interest-rate hikes, according to its CEO https://t.co/n1D6uAleY4 ...

Core Viewpoint - The Federal Reserve has indicated that interest rates may not be cut as anticipated, with discussions suggesting potential increases if inflation remains above the 2% target [1][2]. Group 1: Federal Reserve Actions - The FOMC voted 10-2 to maintain interest rates at 3.50% to 3.75% in January, marking the first pause since July 2025 after three consecutive cuts of 25 basis points [4][5]. - Fed officials discussed the possibility of raising interest rates if inflation persists, indicating a shift in focus towards managing inflation rather than solely supporting job growth [1][2]. Group 2: Market Implications - A delayed rate cut could lead to prolonged higher borrowing costs for consumers, affecting loans and credit [5]. - The Fed's dual mandate requires balancing inflation and job growth, which can often conflict and be influenced by unpredictable global events [7][8]. Group 3: Expert Opinions - Liz Ann Sonders from Charles Schwab noted the risk of rising inflation and adjusted the forecast for a second rate cut to later in 2026 [3][2]. - Fed Governors Stephen Miran and Christopher Waller expressed dissent regarding the January pause, advocating for a 25-basis-point cut due to labor market softening [5].

Australia’s central bank board discussed the circumstances under which it would have to pivot to interest-rate hikes in 2026 as inflation risks shift to the upside, while reiterating that any future moves will hinge on economic data https://t.co/WvzwNQJPE7 ...

Australia’s consumer confidence slumped in December as the Reserve Bank indicated that its brief easing cycle has come to an end and there’s the potential for a return to interest-rate hikes in 2026 https://t.co/9hwiTu7ruD ...

Australia’s economy grew at a surprisingly softer pace last quarter, clouding the picture on the economy’s underlying strength and suggesting markets may have been premature in pricing interest-rate hikes https://t.co/9utOUlWhVR ...