China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 
RBA Signals More Rate Hikes Possible as Australia Battles Stubborn Inflation 
Japan PM Sanae Takaichi Unveils Growth Plan as BOJ Independence Concerns Lift Bond Yields 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Philippine GDP Growth Slows to 2.3% in Q2 
BOJ Minutes Signal More Rate Hikes as Inflation Risks Grow 
Gold Prices Steady as Hormuz Tensions Fuel Fed Rate Concerns 
US Stock Futures Flat as Iran Strait of Hormuz Demands Fuel Oil Concerns 
Asian Stocks Mixed as Chip Selloff Hits KOSPI, Nikkei Ahead of US Jobs Data 
BOJ Signals Faster Rate Hikes as Inflation Risks Raise September Move Odds 
US Job Growth Seen Picking Up in July 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
Federal Reserve Chair Jerome Powell acknowledged significant uncertainty Wednesday, stating policymakers "just don't know" how rising oil prices stemming from the ongoing Middle East conflict will ultimately impact U.S. inflation and economic growth.
The Federal Open Market Committee (FOMC) kept its benchmark federal funds rate unchanged at 3.50%–3.75% for a second straight meeting, following three cumulative rate cuts totaling 75 basis points late last year. The decision aligned with widespread market expectations.
The Fed's updated dot plot continued signaling at least one rate cut in 2025 and another in 2027, but policymakers revised their core PCE inflation forecast upward to 2.7% for 2026, compared to December's 2.5% projection. Powell attributed the revision partly to surging energy costs and limited progress on tariff-related price pressures.
Since hostilities began in late February, Brent crude has surged nearly 50%, pushing U.S. gasoline prices to their highest levels since October 2023. Powell acknowledged higher energy costs would filter into overall and core inflation, but stressed it remains too early to gauge the full economic impact. He emphasized the Fed would monitor how long current geopolitical conditions persist before adjusting its policy stance.
Market strategists noted the decision, while unsurprising, reflects a narrowing path forward for the central bank. With inflation stubbornly above the Fed's 2% target and labor market signals turning mixed, analysts expect a prolonged higher-for-longer interest rate environment.
On the topic of leadership succession, Powell confirmed his term ends May 15, 2026, with Kevin Warsh nominated as his replacement. However, Senate confirmation remains stalled. Powell stated he would serve as chair on a provisional basis if his successor is not confirmed in time, and expressed his intention to remain on the Fed's board until an ongoing DOJ investigation concludes transparently.
Wall Street ended lower following Powell's press conference.
