The US central bank, with its recent decision, is attempting to avoid a liquidity shortage that could be caused by excessive withdrawal of reserves from the banking system. The Federal Reserve (Fed) cut interest rates by 25 basis points for the second consecutive meeting, bringing policy rates to their lowest range since 2022, between 3.75% …
Tag: interest rates
European banks’ return on equity hits 300% in 5 years
Despite their explosive rise (40% gains for 2025), European bank stocks are facing a tough time as sentiment has already been affected by the new uncertainty in France. Still, investors may find it hard to ignore the momentum of Europe’s best-performing sector so far this year. An investor who bought European bank stocks five years …
The appreciating yen and the depreciation of the dollar became a nightmare for Japan
As Donald Trump tries to weaken the dollar to boost the US economy and manufacturing, the Japanese yen is developing safe-haven behavior faster than Tokyo policymakers would like – causing monetary policy turmoil in Asia’s second-largest economy. The extent to which the US president’s trade war is hurting confidence in dollar-denominated assets can be seen …
How will the “punishers” of the bond market be eliminated in 3 moves? The battle for the 10-year
Donald Trump’s retreat, as many mainstream media outlets have pointed out, was not so much driven by the bloodshed on Wall Street as by the reaction of the so-called “punishers” of the bond market (please read also the analysis titled “Tariffs and the $3 trillion held by Asian central banks that make them punishers in …
FED ignores Trump: Interest rates unchanged at 4.25% to 4.50%
The Federal Reserve (Fed) kept its policy interest rates unchanged in the range of 4.25% to 4.50%, ignoring calls from US President Donald Trump for monetary policy easing. Notably, the majority of FED officials (9 officials) participating in the FOMC committee predict that the average of the base rate range will be 3.875 at the …
Trump sets limits on Powell and the crucial battle with inflation
“Relief in Prices for American Families and Combating the Cost of Living Crisis” is the title of one of several executive orders issued by President Donald Trump in his first week back in the Oval Office. This executive order directs federal agencies to “provide extraordinary price relief” to the American people by reducing federal regulations …
The $16 trillion AI “bubble”!!!!!
Investors have been betting heavily on an artificial intelligence (AI)-driven future over the past two years, as technology stocks have led the S&P 500 index up 60%. As of January 24, 2025, the cumulative market capitalization of Nvidia (NVDA) and other major AI infrastructure companies was nearly $16 trillion. But there has also been a …
The Central Bank of Russia keeps the key interest rate unchanged for 2025!
At the last meeting of the Board of the Central Bank of the Russian Federation this year, it was decided to leave the key interest rate unchanged – at the level of 21%. This came as a surprise: most analysts were confident that the regulator would continue to tighten monetary policy and increase the index …
High borrowing costs are biting Russian businesses
US restrictions imposed in June to undermine the Kremlin have put local banks in countries that trade with Russia at higher risk of so-called secondary sanctions, increasingly delaying or disrupting payments to and from places like China and Turkey. This makes it difficult, and sometimes impossible, to execute transactions, particularly with China, Russia’s most important …
EU will suffer a loss of 260 billion from Trump tariffs – Markets crash from -15% to -20%
If Donald Trump follows through on his promises and imposes tariffs on European goods imported into the US, then the continent will truly be plunged into a deep recession. Donald Trump’s victory could hurt Europe’s economy, as the proposed 10% US tariffs risk hitting European exports such as cars and chemicals, eroding Europe’s GDP by …