January 3, 2025
United States:
Reserves at Fed Sink Below $3 Trillion to the Lowest Since 2020
The US banking system’s reserves, a key factor in the Federal Reserve’s decision to keep shrinking its balance sheet, tumbled below $3 trillion to the lowest since October 2020.
Bank reserves fell by about $326 billion in the week through Jan. 1 to $2.89 trillion, according to Fed data released on Thursday.
Europe:
German Unemployment Rose Less Than Expected in December
German unemployment increased less than anticipated, suggesting the labor market is weathering the latest economic rough patch.
Joblessness rose by 10,000 in December, while economists polled by Bloomberg had predicted an increase of 15,000. The unemployment rate held at 6.1%, the Federal Labor Agency said Friday in a statement.
Asia:
China Lets Yuan Weaken After Defending 7.3 Per Dollar for Weeks
The onshore yuan weakened past a level that China had been defending throughout December, opening room for the managed currency to drop further amid a sluggish economy.
The yuan breached the psychological milestone of 7.3 per dollar for the first time since late 2023, amid concerns over China’s economic struggles and a widening bond yield discount to the US.
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