Malaysia Central Bank Moves to Support Ringgit Amid Foreign Fund Outflows 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Japan Revises Economic Blueprint to Reassure Markets on BOJ Independence 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
Fed Reaffirms 2% Inflation Goal, Vows Forceful Action to Anchor Price Expectations 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
Fed Chair Kevin Warsh Launches Task Forces to Overhaul U.S. Monetary Policy Framework 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Japan Signals Preference for Low Interest Rates as BOJ Policy Debate Intensifies 
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.
