China’s central bank kept its benchmark lending rates unchanged, maintaining the one-year LPR at 3.1% and the five-year LPR at 3.6%. This decision contrasts with the recent US Federal Reserve rate cut and reflects China’s cautious approach to stimulating economic growth while managing a weakening yuan. The move impacts corporate and household loans, along with mortgage rates.
Reserve Bank of India Governor Shaktikanta Das met with Finance Minister Nirmala Sitharaman, sparking speculation about a potential extension to his term which ends on December 10th. This meeting follows the recent monetary policy announcement and fuels discussion about Das’s legacy and the future leadership of the RBI.
A busy day in India with the RBI announcing its monetary policy, Finance Minister Sitharaman beginning pre-budget consultations, a holiday declared for Mahaparinirvan Diwas, and farmer protests underway. Get the latest updates here.
The re-election of Donald Trump has brought back the question of whether he can remove Federal Reserve Chair Jerome Powell. While the law technically protects Powell, Trump could choose not to reappoint him in 2026. Powell’s recent dovish remarks, including a potential rate cut in December, have sparked debate among economists about the Fed’s independence and future rate trajectory.
The Federal Reserve’s decision to cut interest rates by 25 basis points has sparked contrasting opinions among leading economists. While some see it as a necessary move to address inflation, others warn of persistent inflation risks and question the effectiveness of the Fed’s strategy.
Federal Reserve Chair Jerome Powell has firmly stated that he will not resign if former President Donald Trump requests it, reiterating his commitment to the Fed’s independence. Despite Trump’s past attempts to influence the Fed’s decisions, Powell maintains that the central bank’s policy decisions remain unaffected by political pressure.
The Federal Reserve lowered interest rates for the second time in as many months, bringing the federal funds rate to a range of 4.5% to 4.75%. While the move was widely anticipated, economists are now analyzing the implications for the future of monetary policy. Some analysts see further rate cuts on the horizon, while others remain cautious about the economic outlook.
The Reserve Bank of India (RBI) is seeking a new deputy governor to replace Michael Patra, whose term ends in January 2025. The advertisement for the position, released on Monday, details the qualifications required for the role, including extensive experience in public administration or finance. The new deputy governor will be responsible for crucial departments like monetary policy and economic research, and will be eligible for re-appointment.
The Federal Reserve’s favored inflation measure, the PCE price index, accelerated in September, raising concerns about the likelihood of back-to-back interest rate cuts in the upcoming months. While a 25-basis-point rate cut at the next Fed meeting is widely expected, the stronger-than-expected core PCE inflation could impact expectations for a December cut.
Renowned investment strategist Lyn Alden argues the U.S. has entered an era of ‘fiscal dominance,’ where government deficits dictate monetary policy, potentially creating favorable conditions for Bitcoin. She highlights the implications of this shift, particularly for inflation and the Federal Reserve’s ability to control it. Alden sees Bitcoin as a potential hedge against monetary debasement, emphasizing the importance of continued adoption and utility. Her analysis emphasizes the diverse viewpoints within governments regarding cryptocurrencies, advocating for education to foster balanced regulation.
