Wall Street Ends Lower as AI Stocks Drag Markets, Fed Rate Outlook Shifts 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
S&P Affirms Brazil’s BB Credit Rating with Stable Outlook Amid Fiscal Challenges 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Gold Prices Fall Below $4,000 as Strong Dollar, Fed Rate Hike Bets Weigh on Bullion 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
Asian Stocks Slip as US-Iran Ceasefire Hopes Lift Oil, Dollar Strength Persists 
Morgan Stanley Sees Chinese Auto Market Recovery Gaining Momentum in Late Summer 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
Bank Regulation Rollbacks in the U.S. and UK Could Increase Financial Risks, Study Warns 
Federal Reserve Cuts Interest Rates by 25 Basis Points
Ongoing Inflation Progress and Labor Market Slowdown Drive Fed’s Decision
The Federal Reserve cut its benchmark interest rate by 25 basis points to a range of 4.50%-4.75% on Thursday. This adjustment, following September’s larger 50-basis-point cut, reflects ongoing improvements in inflation control and indications of a softening labor market.
According to Fed Chairman Jerome Powell, “The labor market is not a significant source of inflationary pressures,” citing indicators suggesting the labor market is less tight than it was before the pandemic. The latest measure of the Fed’s preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, remained steady at 2.7% in September, slightly above economist expectations of 2.6%.
Impact of Political Shift: Potential Policy Adjustments Under New Leadership
This rate cut arrives amid political changes, with President-elect Donald Trump’s victory signaling potential economic policy shifts. Powell noted that while immediate policy changes aren’t anticipated, potential measures from the new administration—like tariffs, tax adjustments, and immigration policy revisions—could impact inflation and the Fed’s rate-cut timeline.
Market expectations suggest the Fed will conclude its rate-cutting cycle after two more 25-basis-point reductions in 2025, bringing rates to the 3.75%-4% range.
