Chief Economist Philip Lane said the central bank's modeling showed markedly lower inflation for three years in response to a 10% gain in the euro's exchange rate. ...

Core Insights - The Federal Reserve has begun to recover from a three-year period of unprecedented losses related to its monetary policy implementation post-COVID-19 pandemic [1] - Since November 5, the Fed's deferred asset has decreased from $243.8 billion to $243.2 billion, indicating a positive shift in a long-term trend [2] - The combined profits of the 12 Reserve Banks are projected to exceed $2 billion in the current quarter, suggesting a return to profitability [3] Monetary Policy Impact - The Fed's bond-buying spree during the pandemic increased its holdings to a peak of $9 trillion by summer 2022, aimed at stabilizing the financial system and lowering long-term borrowing costs [5] - Rising inflation led the Fed to sharply raise interest rates starting in early 2022, creating a mismatch between income generated and payouts to banks [6] - Recent rate cuts have reduced the Fed's losses by lowering payouts to banks, with the federal funds target rate currently between 3.75% and 4% [7]

The Federal Reserve’s decision to halt balance-sheet runoff comes as crypto pressure spreads across the market after a sharp weekend sell-off. As per Reuters’ report, the central bank ended quantitative tightening on December 1. It will now roll over maturing Treasuries and reinvest mortgage-bond payouts into Treasury bills. The goal is to keep reserves “ample” as money markets in the United States show signs of strain. DISCOVER: Next 1000X Crypto – Here’s 10+ Crypto Tokens That Can Hit 1000x This Year ...

Core Viewpoint - The People's Bank of China (PBOC) reported the liquidity injection situation for November 2025, indicating various monetary policy tools used to manage liquidity in the financial system [1][3]. Group 1: Liquidity Injection Overview - In November 2025, the net injection from the open market government bond transactions was 50 billion RMB [1][3]. - The PBOC conducted a net withdrawal of 556.2 billion RMB through 7-day reverse repos [1][3]. - A net injection of 500 billion RMB was made through other term reverse repos [1][3]. - The medium-term lending facility (MLF) saw a net injection of 100 billion RMB [1][3]. - The standing lending facility (SLF) experienced a net withdrawal of 0.3 billion RMB [1][3]. - The pledged supplementary lending (PSL) had a net injection of 25.4 billion RMB [1][3]. - Other structural monetary policy tools contributed a net injection of 115 billion RMB [1][3]. Group 2: Detailed Breakdown of Monetary Tools - The MLF had a total injection of 100 billion RMB and a total withdrawal of 90 billion RMB, resulting in a net injection of 10 billion RMB [2]. - The PSL had a total injection of 25.4 billion RMB with no withdrawals [2]. - Other structural monetary policy tools had a total injection of 61.08 billion RMB and total withdrawals of 49.58 billion RMB, leading to a net injection of 11.5 billion RMB [2]. - The 7-day reverse repo had a total injection of 48.056 billion RMB and total withdrawals of 53.618 billion RMB, resulting in a net withdrawal of 55.62 billion RMB [2]. - Other term reverse repos had a total injection of 15 billion RMB and total withdrawals of 10 billion RMB, leading to a net injection of 5 billion RMB [2]. - The open market government bond transactions had a total injection of 50 billion RMB with no withdrawals [2].

(Bloomberg) — After cutting interest rates by more than a percentage point, Federal Reserve officials are now wondering where to stop – and finding there’s more disagreement than ever. In the past year or so, prescriptions for where rates should end up have diverged by the most since at least 2012, when US central bankers started publishing their estimates. That’s feeding into an unusually public split over whether to deliver another cut next week, and what comes after that. Most Read from Bloomberg Fed ...

Euro zone inflation stood at 2.2% in November, marking a slight rise from the previous month, flash data from data agency Eurostat showed Tuesday.The latest consumer price index reading is just a shade above the European Central Bank's 2% target. Economists polled by Reuters expected a reading of 2.1% for the twelve months to November.Looking at the main components of euro area inflation, services is expected to have the highest annual rate in November, at 3.5% compared with 3.4% in October, Eurostat said. ...

The selloff in Australia’s sovereign debt is set to extend with upcoming economic data likely to bolster the case for the central bank to turn hawkish next year https://t.co/Wdziy1sR00 ...

President Trump uh says he's made his choice on the next Fed chair to replace Jay Pal, but he isn't making uh the name public just yet. Joining us now, former Cleveland Fed President Loretta Mester. She's also a CNBC contributor.I I guess you don't um you probably don't want to tell us who you'd like uh Loretta, but what what type of person uh would you like to be the next head. >> Yeah, good morning, Joe. Hope you had a good holiday.>> I mean, we need somebody who's going to be a thoughtful leader who can ...

Core Insights - The new head of the Bank for International Settlements emphasizes the need for policymakers to focus on limiting hedge funds' capacity to engage in highly leveraged investments in government bond markets due to the rising levels of public debt [1] Group 1 - The increasing public debt levels are a significant concern for financial stability [1] - Hedge funds are currently able to make substantial leveraged bets, which poses risks to the government bond markets [1] - Policymakers are urged to prioritize regulations that would rein in these hedge fund activities [1]

Core Viewpoint - The European Central Bank (ECB) highlights "elevated" risks to financial stability in the euro area, driven by stretched asset valuations and fiscal challenges in certain countries [1] Group 1: Financial Resilience - ECB Vice President Luis de Guindos emphasizes the importance of financial resilience amid current economic conditions [1] - The ECB's bi-annual Financial Stability Review indicates potential sharp adjustments in asset valuations, which could impact investor confidence [1] Group 2: Fiscal Concerns - Fiscal challenges in France and other EU nations are identified as significant factors that may test investor confidence [1] - The ECB's assessment suggests that these fiscal issues could have broader implications for the stability of the euro area [1] Group 3: Economic Outlook - The ECB provides an outlook for euro-area economic growth, indicating that current conditions may pose risks to this growth trajectory [1] - The discussion reflects concerns about the overall economic environment in the euro area and its potential impact on financial markets [1]