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Interest Rates: Latest News and Analysis

MarketWatch
Fed's Goolsbee says interest rates 'can still go down by a fair amount'
Chicago Federal Reserve President Austan Goolsbee still think interest rates are too high for the good of the U.S. economy. But he said it will probably take longer to reduce them to what he considers ...
Global Macro Playbook
UK Bond Market in Turmoil as BOE Rate Path Remains Unclear

Long-term UK government borrowing costs are approaching their highest levels since 1998, with investors grappling with uncertainty over the extent to which the Bank of England (BOE) will cut interest rates next year, reports Bloomberg.

The yield on 30-year bonds surged to 5.16% on Friday, marking the highest close

CNBC
The Fed cut interest rates, but mortgage costs jumped. Here's why
The average 30-year fixed rate mortgage spiked after the Federal Reserve cut rates. Experts say expectations for rate cuts in 2025 fueled the jump.
Global Macro Playbook
Trump's Policies May Limit Fed Rate Cuts in 2025

The Federal Reserve's "hawkish" quarter-point rate cut, the third of 2024, signals a shift towards a more cautious approach to monetary policy, and President-elect Donald Trump's proposed policies could further limit the central bank's ability to lower rates in 2025, according to

CNBC
The Fed cut interest rates but mortgage costs jumped. Here's why
The average 30-year fixed rate mortgage spiked after the Federal Reserve cut rates. Experts say expectations for rate cuts in 2025 fueled the jump.
Newsweek
Mortgage Rates 2025: Predictions for Next Year
Based on the Fed's new decision, interest rates are now reduced by a quarter percentage point, moving to a range of 4.25 and 4.5 percent.
Global Macro Playbook
China's Central Bank Steps Up Yuan Support After Fed Move

China's central bank has stepped in to support the yuan after the US Federal Reserve's latest interest rate decision sent the dollar soaring, reports Nikkei Asia. The People's Bank of China (PBOC) set the yuan's reference rate at 7.1911 per dollar

Global Macro Playbook
New Zealand Plunges into Recession, Prompting Calls for Deeper Rate Cuts

New Zealand's economy has fallen into recession, contracting far more sharply than anticipated in the third quarter, according to data released on Thursday by Stats NZ, as reported by Reuters. This dire outcome, exceeding even the Reserve Bank of New Zealand's (RBNZ) own pessimistic forecasts, is

Global Macro Playbook
Norges Bank Holds Steady, But First Rate Cut Nears

Norway's central bank, Norges Bank, has held its key policy rate at 4.5%, signaling its commitment to cooling inflation, but also hinting at an impending shift towards monetary policy easing, reports the Wall Street Journal. The decision aligns with a recent Wall Street Journal poll.

The 4.

Financial Times
Renewed inflation fears stalk central bankers as markets shudder
Policymakers say they will only cut rates slowly in 2025 as they struggle with ‘last mile’ of cooling price growth ...
Global Macro Playbook
Japan's Inflation Accelerates, Keeping Rate Hike Prospects Alive

Japan's core inflation accelerated in November, rising to 2.7% year-on-year, according to government data released Friday, reports Reuters. This increase, slightly exceeding analysts' forecasts, keeps pressure on the Bank of Japan (BOJ) to consider further interest rate hikes.

The BOJ, which opted to keep rates steady

Newsweek
Russia Holds Interest Rates at 21% Amid Inflation
Contributing factors to inflation include increased military production, labor shortages, and a weakening ruble.
MarketWatch
Fed far from 'neutral' on interest rates, Williams says. Let the disagreement begin.
A key short-term interest rate used by Federal Reserve to control the U.S. economy still has far to fall to get to what one top official believes is "neutral." New York Federal Reserve President John ...
Financial Times
Softer PCE inflation in November will not accelerate Fed easing
Yet the soft release is unlikely to have much significance for the Federal Open Market Committee. At this week’s post-decision press conference, Fed chair Jay Powell signalled that rate-setters were ...
Reuters
US Federal Reserve interest rate decision live
The Fed is expected to lower borrowing costs on Wednesday at 2 p.m. ET in what some are calling a "hawkish cut".
The Hill
Watch live: Powell gives remarks on expected interest rate cut, Fed’s 2025 outlook
Federal Reserve Chair Jerome Powell is set to hold a briefing Wednesday afternoon as the central bank is set to cut interest rates for a third time. The decision comes as inflation picked up ...
The Hill
Fed cuts interest rates by quarter point despite firmer inflation
The Federal Reserve cut interest rates by a quarter percentage point Wednesday, in line with market expectations, even as inflation has reaccelerated over the past two months. Fed officials have ...
Wall Street Journal
Fed Cuts Interest Rates Again, but Officials Expect Fewer Reductions in 2025
The Federal Reserve agreed to cut interest rates by a quarter-point Wednesday but signaled greater doubt over how much and how fast it would reduce them going forward.The latest reduction, which was ...
Newsweek
Federal Reserve Cuts Interest Rates by Quarter-Point
As inflation in the U.S. has cooled, the Fed cut rates twice, once in September and once in November. On September 18, the Fed cut interest rates by a half-percentage point to between 4.75 and 5 ...
Financial Times
Federal Reserve cuts interest rates by quarter-point but signals slower pace of easing
The Federal Reserve cut its benchmark interest rate by a quarter of a percentage point but signalled a slower pace of easing next year as it seeks to bring inflation fully under control.
Reuters
Qatar central bank cuts key interest rates by 30 bps, central bank says
CAIRO, Dec 18 (Reuters) - Qatar's central bank cut key interest rates by 30 basis points (bps) on Wednesday. The central bank reduced its deposit rate by 30 bps to 4.60%, its lending rate by 30 bps to ...
CNBC
The Federal Reserve cuts interest rates by another quarter point. Here's what that means for you
The central bank has now shaved a full percentage off its benchmark rate since September. Here's what it means for your borrowing costs.
Reuters
Most Gulf central banks follow Fed lead and cut key interest rates
Most central banks of the Gulf Cooperation Council cut key interest rates on Wednesday, following the Federal Reserve's decision to reduce U.S. rates by a quarter of a percentage point.
Wall Street Journal
December Cut Was a 'Closer Call,' Powell Says
Federal Reserve Chair Jerome Powell says that the latest rate cut was a tougher decision given the persistence of inflation. "Today was a closer call, but we decided it was the right call," Powell ...
Wall Street Journal
Federal Reserve Cuts Rates: What It Means for Your Money in 2025
Deborah Kearns has more than 15 years of experience in personal finance and is an expert on specializing in real estate, mortgages, estate planning and debt consolidation. Senior editor, Buy Side from ...
Wall Street Journal
Transcript: Fed Chief Jerome Powell’s Postmeeting Press Conference
Federal Reserve Chair Jerome Powell discussed the central bank’s decision Wednesday to cut the benchmark federal-funds rate to a range between 4.25% and 4.5%, a two-year low, after the Fed cut rates ...
Reuters
Lennar reports Q4 results below estimates on increased cost from higher interest rates
Lennar Corp missed Wall Street estimates for fourth-quarter profit and revenue on Wednesday, as potential buyers remained reluctant to buy homes due to volatile mortgage rates, sending its shares down ...
Financial Times
Federal Reserve cuts rates but ‘hawkish’ forecast hits stocks and sends dollar jumping
The Federal Reserve cut its benchmark interest rate by a quarter of a percentage point but signalled a slower pace of easing next year as it seeks to bring inflation fully under control.
Global Macro Playbook
Bank of Japan Stands Pat, Keeping Rates Unchanged

The Bank of Japan (BOJ) on Thursday opted to keep its accommodative monetary policy unchanged, maintaining its key policy rate at 0.25% for the third consecutive meeting, reports Nikkei Asia. The decision, while expected, comes as the Japanese economy shows uneven performance and consumer inflation signals a potential cooling

Global Macro Playbook
Fed Cuts Rates But Signals Caution as Trump Uncertainty Looms

The Federal Reserve cut interest rates on Wednesday, as widely expected, but Chair Jerome Powell indicated that further reductions in borrowing costs will be more cautious going forward, signaling a new era of uncertainty under the incoming Trump administration, reports Reuters.

Powell's emphasis on a more measured approach

Global Macro Playbook
Bank of England Expected to Keep Interest Rates Steady

The Bank of England is widely anticipated to maintain interest rates at their current level of 4.75% at a meeting later today, reports the BBC. This decision comes despite inflation rising for the second consecutive month to 2.6% in the year to November, exceeding the Bank's

CNBC
The Fed cut interest rates by another 25 basis points—here’s what will get cheaper
The Fed has cut its benchmark interest rate by 1% since September, making borrowing cheaper for credit cards, loans and auto financing.
Reuters
Taiwan keeps interest rates unchanged, as expected
Taiwan's central bank held its policy rate unchanged as expected on Thursday, prompted by lingering concerns on inflation.
Wall Street Journal
Taiwan Central Bank Holds Key Interest Rates Amid Steady Growth, Inflation
Taiwan’s central bank maintained interest rates unchanged again, delivering a third consecutive hold as it keeps a watchful eye on inflation and signs of overheating in the housing market. The Central ...
Reuters
Taiwan raises growth forecast, keeps interest rates unchanged
Taiwan's central bank held its policy interest rate unchanged on Thursday while raising its growth estimate for the year, but flagged risks for next year from trade policies from the incoming Trump ...
Bloomberg
Traders Doubt Whether BOE Will Cut Interest Rates in February
Investors pared bets on further interest-rate cuts from the Bank of England, with the market assigning just a 50% chance of a quarter-point cut in February.
Reuters
Fed's Powell not ready to say what Trump policies will do to economy
Federal Reserve Chairman Jerome Powell said Wednesday it's too soon to say what President-elect Donald Trump's proposed economic policies will do to the economy and how that might bear on the central ...
Wall Street Journal
Euro Credit Default Swaps Rise Following Fed Interest-Rate Decision
The cost of insuring euro-denominated credit against default using credit default swaps rises on reduced appetite for risk after the U.S. Federal Reserve on Wednesday cut interest rates but signaled a slower pace of rate cuts ahead.
Wall Street Journal
Where Might the Fed Take Interest Rates Over the Long Run?
The Federal Reserve's Jerome Powell has described recent rate cuts as moving borrowing costs to a more “neutral” setting. Now he has suggested the Fed is ready to pause, the question of what a neutral ...
Financial Times
Bank of England holds interest rates at 4.75%
The Bank of England has kept interest rates on hold at 4.75 per cent, after inflation edged up in November. The Monetary Policy Committee’s decision, which was in line with forecasts from economists ...
Wall Street Journal
Heard on the Street: Trump Is Already Unnerving the Federal Reserve
The Federal Reserve’s economic projections and Chair Jerome Powell’s press conference spooked the stock market Wednesday. One undeniable takeaway was concern over the president-elect’s policy proposals,
Financial Times
Donald Trump’s presidency looms over the Federal Reserve
Donald Trump’s economic plans are hanging over the US Federal Reserve and chair Jay Powell. The central bank lowered interest rates yesterday by a quarter-point, but officials also projected fewer cuts next year as they start to factor in Trump’s proposed economic policies [free to read].
Bloomberg
Fed's Powell Says Inflation Is Moving Closer to Our Goal
The Federal Reserve lowered its benchmark interest rate for the third consecutive time, but reduced the number of expected cuts in 2025, signaling caution. Chair Jerome Powell says inflation is moving toward its goal of 2%.
Reuters
US stocks face headwind from rising yields after Fed signals fewer rate cuts
The rally in U.S. stocks is encountering a fresh hurdle -- a potentially problematic rise in Treasury yields as the Federal Reserve signals fewer interest rate cuts for 2025.
MarketWatch
Stock Market Today: Dow ends down over 1,100 points after Fed lowers interest rates, signals fewer cuts in 2025
The Cboe Volatility Index, which trades under the ticker symbol VIX, was down 4% at slightly more than 15, according to FactSet data, at last check. The VIX was trading slightly below its 200-day ...
U.S. News & World Report
Fed Cuts Rates for Now, But Suggests a Slower Easing Ahead as Economy Remains Strong
The Federal Reserve cut interest rates by a quarter point on Wednesday, as expected, but suggested that the pace at which it will reduce rates next year would be cut in half. The move brings the Fed’s key overnight lending rate to a range of 4.
Bloomberg
Crypto and Rates to Drive US Convertible Debt Growth in 2025
The US convertible securities market could test its pandemic-era highs in 2025, bankers say, with interest rates remaining above where many on Wall Street expected and a crypto asset-related strategy ...
MarketWatch
Strategists have their eye on 10-year Treasury yield's road back toward 4.5%
Ahead of Wednesday's policy update from the Federal Reserve, strategists at BMO Capital Markets were contemplating whether the bond market's recent selloff can continue and whether it will push the 10 ...
Reuters
Wall St falls on caution over Fed decision after strong retail sales
Wall Street's main indexes fell on Tuesday, as investors turned cautious ahead of the Federal Reserve's last interest rate announcement of the year following stronger-than-expected retail sales data.