February 18, 2025
United States:
Fed’s Waller Favors Pausing Rate Cuts Until Inflation Bump Fades
Federal Reserve Governor Christopher Waller said recent economic data support keeping interest rates on hold, but if inflation behaves as it did in 2024, policymakers can get back to cutting “at some point this year.”
“If this wintertime lull in progress is temporary, as it was last year, then further policy easing will be appropriate,” Waller said in remarks he’s scheduled to deliver on Tuesday in Sydney. “But until that is clear, I favor holding the policy rate steady.”
Europe:
German Investor Outlook Jumps Most in Two Years Before Vote
Investor confidence in Germany’s economy improved by the most in two years, with elections this weekend set to produce a more market-friendly government and interest-rate cuts bolstering demand.
The ZEW institute’s index of expectations rose to 26 in February from 10.3 in January — more than economists had forecast.
Asia:
China Bond Selloff Deepens on Cash Squeeze, Stocks Optimism
A selloff in China’s bonds extended into a fifth day amid signs investors are shifting some funds to stocks and seeking out higher yields in the short-term money market.
Sovereign yields had slumped to record lows due to sluggish growth, a dearth of attractive assets and concern over the impact of US levies on the economy.
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