Rate Cut Financial News

Economist Peter Morici reacts to the Fed signaling that it could cut interest rates three times in 2024, on 'Varney & Co.'

Also Read: PBOC's bold move: Injects $112 billion lifeline amid economic challenges The People's Bank of China (PBOC) said it was keeping the rate on 1.45 trillion yuan ($203.97 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.50% from the previous operation. With 650 billion yuan worth of MLF loans set to expire this month, the operation resulted in a net 800 billion yuan fresh fund injection into the banking system in December, booking the biggest monthly increase on record, Reuters reported.

the US Federal Reserve's dovish outlook. The US Federal Reserve signalled to put an end to its interest rate-hiking policy and gave a hint of lower borrowing costs in 2024. Spot gold rose 1% at $2,046.69 per ounce as of 9:46 a.m.

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Investing.com — U.S. stocks rose Thursday, adding to the previous session’s strong gains after the Federal Reserve signaled interest rate cuts to start next year, helped by a bounce in retail sales.

In October, the markets were down 10% from the July high, bond yields were touching 5%, and talk of a coming recession was rampant. What happened?

Banking giant Goldman Sachs projects two interest rate cuts in the United States by the Federal Reserve in 2024 with the first to be announced in the third quarter.

By Wayne Cole and Lawrence White

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SK Ghosh, Group Chief Economic Advisor, SBI, says “if you look into the data of the US consumer spending and other data, labour markets are saying house prices are now declining in the US. Taking all these factors into account, I believe that possibly the slowdown in the global economy, specifically the US, at a rate which is larger than anticipated by the market would be the possible source of outside risk for the Indian economy.” What is your view on what is happening to the yield rates globally? 10-year yields are coming down from 5% plus to 4.2-4.3% thereabouts. What is the normalised level world should make do with? Do you think 4.2%, 4.3% is the new normal or is it headed lower? As we have said in our report recently, the outlook on the global economy so far is that the US could be spared a major recession and the growth has been very strong. But beyond these headline growth numbers, the US’ real economy numbers do not look so inspiring at this point of time. The payroll numbers have been revised downwards by eight times in nine months. There have also been some recession indicators showing that the US could be possibly on the verge of a significant slowdown. The only thing which is keeping the US economy headline growth strong is currently the excess savings of $1 trillion the US consumers have built up over the years.

Reserve Bank of India’s rate-setting panel on December 6 commenced the fifth meeting this financial year. India’s relatively favourable macroeconomic indicators give the central bank even more confidence to chart its own path, even as it remains wary of worrying external factors. Retail inflation eased from a four-month-high in October at 4.87 per cent while India’s gross domestic product (GDP) growth rate trumped analyst expectations in Q2FY24 at 7.8 per cent. The Monetary Policy Committee’s priority is clear, as said by the RBI Governor Shaktikanta Das, inflation over growth and draining out excess liquidity from the system. To this extent, the RBI is expected to keep benchmark lending rates unchanged, for the fifth straight time. The MPC’s decisions have been in stark contrast to some advanced economies, who continue their fight to tame sticky price pressures. Moreover, MPC members have perhaps afforded doing so as it has enjoyed optimism on certain high-frequency indicators in the fastest growing major economy, while key global economies are sailing in rough seas.

Investing.com-- Most Asian stocks rallied on Wednesday as weak U.S. labor market indicators fueled more bets that the Federal Reserve had limited room to keep interest rates higher, helping investors look past a warning on China’s economy.

Investing.com-- Most Asian stocks fell on Tuesday, seeing some profit taking after rallying sharply through November on expectations of a less hawkish Federal Reserve, while a string of weak economic readings from across the region also dented sentiment. 

Gold rate today: On account of US Fed rate cut buzz after Jerome Powell's speech, gold price today ascended above $2,100 levels and hit a new life-time high of $2,146 per ounce levels in early morning session in Asian stock market. Gold rate today ascended to a new life-time peak in domestic market as well. Gold future contract for February 2024 expiry on Multi Commodity Exchange (MCX), opened upside and went on to hit new life-time high of ₹64,000 per 10 gm levels.

Investing.com-- Oil prices steadied in Asian trade on Monday following six straight weeks of losses amid growing optimism over early monetary easing in 2024, while attacks on U.S. vessels in the Red Sea fueled some concerns over Middle East supply disruptions. 

By Brigid Riley

Financial markets construed the much awaited Powell's speech Friday as decisively dovish as he did not seem to push hard against the markets' expectations of hefty rate cuts next year. Powell, in his speech at Spelman College, said that the Federal Reserve's monetary policy is in a restrictive territory and it is too early to time the Fed rate cuts. He added that if appropriate, they are ready to hike rates further.

NEW YORK(Reuters) — The benchmark S&P 500 index closed at its highest level of the year on Friday amid growing optimism the Federal Reserve was done raising U.S. interest rates and could begin to cut them next year as inflation cools.

Fed Chair Jerome Powell’s tone on the risks faced by the US economy just shifted in a dovish direction, spurring a pump in the price of Bitcoin (BTC) to new yearly highs at $39,000.

By Ankur Banerjee

Investors are increasing their collective bets that the Federal Reserve will soon start cutting interest rates – a bet that went into overdrive this week and ignited the strongest rally in bonds in 40 years.