November 25, 2024
United States:
Dollar, US Yields Fall on Bets Bessent Will Dilute Trump Plans
The dollar fell and US government bonds rallied after Donald Trump picked Scott Bessent to run the Treasury, a Wall Street veteran who investors expect will take the sting out of the administration’s more aggressive trade and economic policy proposals.
A gauge of the greenback fell as much as 0.6% on Monday, its biggest decline in over two weeks, before paring the drop in early New York trading.
Europe:
Lane Says ECB Rate Shouldn’t Remain Restrictive for Too Long
The European Central Bank should be able to reduce interest rates to a level where they no longer restrict the economy in 2025, according to Chief Economist Philip Lane.
“We aren’t committing ourselves in advance to a precise pace of reduction, but we will have to gradually reduce our rates,” he told Les Echos in an interview. “Monetary policy shouldn’t remain restrictive for too long. Otherwise, the economy won’t grow sufficiently, and inflation will fall, I believe, below target.”
Asia:
China Keeps Policy Loan Rate Unchanged for Second Month
China’s central bank kept a policy loan rate unchanged after last cutting it in September, as the authorities stay patient in ramping up monetary stimulus.
The People’s Bank of China held the interest rate on the one-year medium-term lending facility steady at 2%, according to a statement on Monday. All of the 14 economists surveyed by Bloomberg forecast no change.
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