The Personal Consumption Expenditures (PCE) price index announced 27th November 2025, rose by 0.2% monthly, matching a 12-month inflation rate of 2.3%, aligning with expectations. Core U.S. inflation recorded more robust figures, climbing 0.3% monthly and reaching an annual rate of 2.8%, but also in accordance with forecasts. Consumer spendingRead More →
The inflation rate, which measures price changes, hit 2.3% in the year to October 2024, a bigger-than-expected increase from 1.7% in September 2024. The increase was in part due to an increase in the regulator-set energy price cap that took effect in October 2024, which is expected to increase energyRead More →
The Bank of England cut interest rates by 0.25% Thursday 7th November 2024, even as Labour’s budget announcement confuses the outlook for future policy easing. The anticipated reduction, marking the central bank’s second this year, lowers the key rate to 4.75%. Financial markets had forecast a high probability of the quarter-point decreaseRead More →
Inflation saw a modest rise in September 2024, edging closer to the Federal Reserve’s target, as reported by the Commerce Department on Thursday 31st October 2024. The personal consumption expenditures (PCE) price index recorded a seasonally adjusted increase of 0.2% for the month, and the year-over-year inflation rate stood atRead More →
On Wednesday 23rd October 2024, the U.S. 10-year Treasury yield climbed again as traders considered recent remarks from Federal Reserve officials regarding the direction of interest rate reductions The U.S. 10-year Treasury yield increased by over 0.030% to approximately 4.24%. The benchmark rate peaked at 4.26% during the session, itsRead More →
Federal Reserve Chair Jerome Powell recently stated that the latest half-percent reduction in interest rates should not be interpreted as a sign that future measures will be equally as aggressive. The Fed suggests that subsequent adjustments will likely be more ‘modest’. In his address, the central bank’s chief highlighted theirRead More →
New Zealand’s central bank has reduced its benchmark interest rate by 0.50% points following its monetary policy meeting, resulting in a consecutive interest rate reduction This decrease sets the Reserve Bank of New Zealand’s interest rate at 4.75%, down from 5.25%. Economists surveyed by Reuters had anticipated this move. PreviouslyRead More →
In September 2024, inflation in the Euro zone fell to 1.8%, falling below the European Central Bank’s target of 2%, according to early data from Eurostat released on Tuesday 1st October 2024 Excluding the more volatile prices of energy, food, alcohol, and tobacco, the core inflation rate stood at 2.7%,Read More →
In September 2024, the German consumer price index softened to 1.8%, falling below expectations based on preliminary data from Destatis, the national statistics office. Month-on-month, the preliminary harmonized CPI saw a slight decrease of 0.1%. According to recent analysis, the last instance of the German harmonized CPI falling below 2%,Read More →
As anticipated in the U.S., prices rose in August 2024, while the annual inflation rate fell to its lowest point since February 2021, according to a Labor Department report on Wednesday 11th September 2024. This development likely now paves the way for a Federal Reserve interest rate reduction next weekRead More →
Is the U.S. economy already weaker than the headline data suggests and should the U.S. Federal Reserve already be easing? In the U.S. recent data (Friday 30th August 2024) showed the personal consumption expenditures (PCE) price index, the Federal Reserve’s favored measure of inflation, ticked up 0.2% last month, asRead More →
The stock markets mix of toil and trouble is in the cauldron ready for a bear market in 2025, if not before. Why? These concerns are now all combining, and it will likely add-up to a bear market of around 25% in 2025 (this is my best guess). Remember –Read More →
On Friday 26th July 2024, U.S. stocks surged, and Wall Street concluded a volatile week on an upbeat note as investors considered the latest U.S. inflation data. The Dow Jones Industrial Average soared 654 points to settle at 40589. The S&P 500 climbed to 5459 while the Nasdaq Composite advancedRead More →
Jerome Powell on Tuesday 9th July 2024 reportedly expressed concern that holding interest rates too high for too long could jeopardize economic growth. This comment came ahead of the consumer price index reading due this week. Preparing for a two-day session on Capitol Hill, the central bank chief stated thatRead More →
Federal Reserve Chair Jerome Powell has expressed satisfaction with the current progress in the inflation battle but indicated a desire for additional positive data before considering a reduction in interest rates. “We want to be more confident that inflation is moving sustainably down toward 2% before we start the processRead More →
Inflation has reached the Bank of England’s target for the first time in nearly three years, having soared to 11.1% in October 2022, the highest in over four decades – driven by a spike in energy and food prices following the pandemic and Russia’s invasion of Ukraine. In the yearRead More →
The S&P 500 soared to a new high, surpassing 5400 for the first time on Wednesday 12 June 2024, following the Federal Reserve’s latest policy statement and the May 2024 inflation report, which suggested a softening of inflationary pressures. The S&P 500 index rose by 0.85%, closing at around 5421Read More →
The U.S. economy exceeded job growth expectations in May 2024, alleviating concerns of a labour market downturn but potentially diminishing the Federal Reserve’s motivation to cut interest rates. Non-farm payrolls surged by 272,000 for the month – a significant increase from April’s 165,000 and surpassing the consensus forecast of 190,000.Read More →
On Thursday, 6th June 2024, the European Central Bank announced a reduction in interest rates, a move that was widely expected, despite persistent inflationary pressures in the eurozone, which comprises 20 nations. The central bank’s primary rate has been lowered to 3.75%, a decrease from the historic high of 4%Read More →
Eurozone inflation increased to 2.6% in May 2024, according to Eurostat’s announcement on Friday 31st May 2024. Analysts had anticipated a 0.1% rise from the 2.4% headline figure reported in April 2024. Core inflation, which omits the unstable effects of energy, food, alcohol, and tobacco, rose to 2.9% from April’sRead More →
The International Monetary Fund (IMF) advises that the Bank of England should contemplate reducing its interest rates to 3.5% by the end of 2025. This suggestion is made as the UK’s economy steadily recovers from the recession caused by the pandemic, while policymakers are dealing with inflationary challenges. The ‘thinking’Read More →
The April inflation came in higher than anticipated, falling to 2.3%, as reported by the Office for National Statistics on Wednesday 22nd May 2024. Traders have now reduced their expectations of a June interest rate cut by the Bank of England (BoE). Markets reacted negatively in early trading. The headlineRead More →
All three major indices closed at records on 15th May 2024 The Dow climbed 0.88%, while the S&P 500 gained 1.17%, ending the session above 5,300 for the first time. The tech-related Nasdaq Composite closed higher by 1.40%. Dow closed at a new high of: 39908 S&P 500 closed at a new high of: 5308 Nasdaq CompositeRead More →
The decision comes as inflation, which measures price rises over a period of time, remains above the Bank’s 2% target at 3.2%. But bank says cuts are coming. Is the 2% target still a sensible benchmark? The 2% inflation target set by central banks has been a widely adopted benchmarkRead More →
The Fed have deliberated over ‘transitory’ inflation – (they got that wrong). They have teased us about when rates will be cut (still waiting). And now we are told no rate cut but: ‘the next rate move is unlikely to be up!’ Probably better to say and do nothing atRead More →
House prices declined in April 2024, with affordability pressures persisting for potential buyers, as reported by Nationwide. The UK’s largest building society reported a 0.4% decrease in house prices compared to the previous month. The average cost of a home now stands at £261,962, which is 4% lower than inRead More →