Fed poised for rate cut amid cautious outlook

Fed may cut rates again this week, signaling cautious future policy amid inflation and labor market concerns.

Published

1 year ago

December 18, 2024

Federal Reserve officials have suggested that a rate cut this week may conclude the first phase of a two-step approach to lowering rates.

In this initial phase, officials had set a low threshold for cuts, having previously maintained high borrowing costs for an extended period.

They awaited sufficient evidence that inflation was moving closer to their target.

Officials initiated rate cuts in September, making a notable half-point reduction followed by a quarter-point cut last month.

A cut this week would mark the third consecutive reduction.

Revised upwards

Over the past year, projections of the long-term rate have been gradually revised upwards, with further adjustments expected this week.

Some officials now emphasize the need for stronger signs of inflation improvement or labor market weakening before further cuts.

Cleveland Fed President Beth Hammack recently expressed concerns about the pace of cuts, referencing instances from the 1990s when the Fed paused after rapid rate reductions.

Recent communications from the Fed indicate a more cautious stance toward additional cuts.

Fed Chair Jerome Powell is encountering skepticism from colleagues regarding ongoing reductions.

The upcoming meeting may add to discussions about the “neutral” interest rate, the level at which economic activity is neither stimulated nor constrained.

U.S. stocks falling amid AI worries and weak earnings

U.S. stocks decline amid AI concerns, defensive sectors rising; traders eye commodities, jobs data, and currency trends for insights.

Published

3 days ago

February 13, 2026

Harvey Vargas

U.S. stocks decline amid AI concerns, defensive sectors rising; traders eye commodities, jobs data, and currency trends for insights.

U.S. stocks are tumbling as investors grow concerned over AI profitability and disappointing earnings. Defensive sectors are attracting attention ahead of the upcoming CPI report, while market participants are carefully watching how tech-heavy AI stocks are influencing broader indices. Steve Gopalan from SkandaFX notes that these factors are shaping market sentiment.

For traders, commodities like gold and oil are also playing a role in sentiment, providing hedges amid market uncertainty. The January jobs report and unemployment data are adding further context, with potential implications for Federal Reserve policy.

Market expectations for rate cuts are shifting as investors weigh economic indicators against global market dynamics. Traders are also eyeing currency movements, including the Australian Dollar and Japanese yen, for signs of broader economic trends.

Money

Wall Street tumbles as tech stocks face AI disruption fears

Wall Street falters as tech stocks dive amid AI anxieties; 2026 seen as critical for proving AI investment returns.

Published

3 days ago

February 13, 2026

Harvey Vargas

Wall Street falters as tech stocks dive amid AI anxieties; 2026 seen as critical for proving AI investment returns.

Wall Street took a sharp hit as tech stocks plummeted amid growing investor anxiety over artificial intelligence. Markets reacted strongly to uncertainty about how AI could disrupt major sectors, leaving investors on edge. Kyle Rodda from Capital.com explains why investors are nervous about what’s ahead.

Cisco Systems’ quarterly results added to the market jitters, while defensive sectors gained attention as investors sought safer bets. Analysts describe 2026 as a ‘prove it’ year for AI, with companies needing to demonstrate real returns on their ambitious investments.

The January Consumer Price Index report and rising concerns over AI’s impact on transportation companies further weighed on sentiment. Investors are now closely watching major tech firms for signals on how AI spending will shape future market performance.

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Money

U.S. jobs report, Fed decisions, and Japan’s economic risks explained

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

Published

4 days ago

February 12, 2026

Harvey Vargas

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

The January US jobs report shows a mixed picture for the economy, with payroll revisions and steady unemployment leaving analysts questioning the impact on Federal Reserve policy. We break down what the numbers mean for interest rates and market confidence.

US stock markets could face turbulence as investors digest the latest jobs data. David Scutt from StoneX explains how these figures may influence equities and what the outlook is for global markets.

Meanwhile, developments in Japan and a strengthening yen could spark new macroeconomic risks. From carry trades to unexpected shocks, we explore how these factors ripple across the global economy.

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