South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Asian Stocks Mixed as Chip Selloff Hits KOSPI, Nikkei Ahead of US Jobs Data 
Singapore Central Bank’s Exchange Rate Policy Explained: Why MAS Uses the S$NEER Instead of Interest Rates 
BOJ Minutes Signal More Rate Hikes as Inflation Risks Grow 
Trump Unveils $3 Billion U.S. Critical Minerals Push 
Australian Shares Fall as Westpac Slides, Miners Gain Ahead of RBA Decision 
Iran-Oman Near Strait of Hormuz Deal as Shipping Tensions Persist 
US Dollar Falls as Weak July Jobs Report Dents Fed Rate Hike Bets 
South Korean Won Leads Asian FX Losses as Dollar Rises 
BOJ Rate Hike Expectations Rise Ahead of September Meeting 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Eurozone Bond Yields Fall as Oil Slump Eases Inflation Fears Ahead of Central Bank Meetings 
The Federal Reserve's latest meeting minutes reveal plans for a slower pace of interest rate cuts, influenced by policy uncertainties tied to President-elect Donald Trump. Analysts at Goldman Sachs noted that Trump's proposed tariffs and mass deportations have raised concerns about inflation trends.
Fed officials highlighted risks tied to Trump's policies, suggesting inflation's return to the 2% target may take longer than anticipated. While the Federal Open Market Committee cut rates by one percentage point in 2024, some members favored a cautious approach to further reductions, citing upside risks to inflation.
Market expectations now lean toward stable borrowing costs in the near term, with the next rate cut forecasted no earlier than May. This sentiment gained traction after private payroll data showed a slowdown in December, while jobless claims declined.
Goldman Sachs analysts observed the absence of discussion about the Fed’s balance sheet reduction in the minutes. They revised their timeline for quantitative tightening (QT), now anticipating Treasury runoff to extend through March and mortgage-backed securities runoff to end in June.
The Fed's careful stance reflects ongoing efforts to balance economic growth, inflation risks, and policy uncertainties, leaving markets attuned to upcoming data, including Friday’s US employment report.
