January 9, 2025
United States:
Fed’s Collins Favors More Patience and Fewer Rate Cuts in 2025
Federal Reserve Bank of Boston President Susan Collins said she favours fewer rate cuts in 2025 than she had anticipated just a few months ago, following strong employment data and lingering inflation.
Collins, who emphasized the need for patience, said her outlook for interest rates was consistent with the median projection from officials released after the Fed’s December meeting.
United Kingdom:
UK Market Selloff Deepens with Pound Falling to Lowest in Year
The pound dropped to a more than one-year low, stocks fell, and gilts extended a fourth day of losses on concern the Labour government will struggle to keep the deficit in check as borrowing costs surge.
Sterling retreated for a third session, down as much as 1% to $1.2239, the lowest since November 2023. Gilts declined sharply at the open, with the 10-year yield rising as much as 13 basis points to 4.92%.
Asia:
BOJ Signals Progress on Wages Without Clear Hint on Hike Timing
The Bank of Japan indicated it sees progress in wage gains, while refraining from giving any clear hints on whether an interest rate hike is coming this month.
“Overall, many chiefs reported that the awareness of the need for sustained wage increases is permeating through a wide range of industries and businesses of various sizes,” the quarterly summary of branch managers’ views released Thursday said.
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